The document outlines basic business functions and firm hierarchy, defining a business as a formal organization that produces goods or services for profit. It emphasizes the importance of business processes and the interdependence of functional areas, highlighting that improved integration leads to better communication and workflow. Additionally, it describes the firm hierarchy, detailing three levels of management: senior, middle, and operational management.

1. “BASIC BUSINESS FUNCTIONS &
FIRM HIERARCHY “
PRESENTED BY:
MAHGUL KHAN
HIBA SHAIKH
MARYAM QAZI
VARDA SHAIKH

2. BASIC DEFINITION OF BUSINESS
Formal organization that provides PRODUCTS or SERVICES to make profit.
PRODUCT
BUSINESS
SERVICE
BUSINESS
That make
tangible
products, that
has some
physical
existence.
That
provide
services like
managing,
planning,
maintaining
etc.
SUPPORTS

3. 4 BASIC BUSINESS FUNCTIONS
1
2
34

4. BUSINESS PROCESS

5. BUSINESS PROCESS
• Manner in which work is organized, coordinated &
focused to produce a valuable product or service.
• It is basically defined in two areas:
For example:
1. Some processes tied to functional area.
Sales & marketing  identifying customers.
2. some processes are cross-functional.
These are  Fulfilling customer orders.

6. FUNCTIONAL AREAS OF OPERATIONS
• Functional areas are interdependent.
• Each of the function requires data from the others.
• Its main purpose is, better integration of functional
areas leads to improvements in:
 communication.
 Workflow.
 Success of company.

7. THE ORDER FULFILLMENT
PROCESS

8. THE ORDER FULFILLMENT
PROCESS
• Fulfilling customer orders involves a complex
set of steps that requires the close
coordination of the sales, accounting, and
manufacturing functions.

10. FIRM HIERARCHIES
OR
LEVELS OF
MANAGEMENT IN A
FIRM

11. FIRM HIERARCHIE:
“AN ORGANIZATIONAL STRUCTURE RANKED
ACCORDING TO THE LEVEL OF IMPORTANCE”
• Firm hierarchical structure consists of a
chain of commands that looks like a
pyramid, shows the flow of authority from
top to bottom.
• The distribution of power among the
individuals of a corporation.

12. LEVELS OF MANAGEMENT IN A
FIRM
There are three levels of management in a firm
•Senior management
•Middle management
•Operational management

13. Senior set of
individuals,
executive
managers they
are board of
directors
Work in
specific
departments
like accounting,
marketing or
production
convert
resources into
desired goods
and services