Functional Areas of a Business Flashcards
What are the 6 MAIN functional areas of a business?
Production
Marketing
Human Resources
Research and Development
Finance (and accounts)
Information Technology
Name 3 Key Functional Activities of the PRODUCTION Department
- Making the product
- Maintaining factory equipment
- The transformation of raw materials into finished products
- Warehousing finished goods
- Controlling the production process
Name 3 Key Functional Activities of the MARKETING Department
- Developing sales and promotion strategies for the product.
- Conducting market research (get customers’ tastes and preferences)
- Designing the company’s product
Name 3 Key Functional Activities of the FINANCE Department
- Produce all the financial reports for the business
- Establish hire purchases and credit control measures
- Budgeting for the company and disbursement/giving out of financial resources to the other departments.
Name 3 Key Functional Activities of the HUMAN RESOURCES/PERSONNEL Department
- Terminations: firing people
- Occupational safety & health: proper railings, fire extinguisher up-to-date, etc.
- Recruitment and selection (of employees)
Name 3 Key Functional Activities of the RESEARCH & DEVELOPMENT DEPARTMENT
- Developing new products.
- Conducting feasibility studies for a new product or business idea.
- Conducting varied types of research on behalf of the company such as product research, technology research, etc.
Name 3 Key Functional Activities of the INFORMATION TECHNOLOGY Department
- Developing and maintaining I.T systems to suit the nature of the business and the needs of the business.
- Ensuring the security of corporate information and assets.
What is a stakeholder?
An individual or group with a vested/direct interest in the operations and performance of a business.
What are BUSINESS stakeholders?
Business Stakeholders activities’ if any business can have a great impact on many people and groups
What is the difference between stakeholders and shareholders?
Stakeholders have a vested interest in the business, and shareholders buy shares to earn money.
What are the two classifications of Stakeholders of a Business?
- Internal Stakeholders
- External Stakeholders
What is an Internal Stakeholder?
Individuals within an organization who have a special interest in its activities and how well the business performs.
What is an External Stakeholders?
Individuals who aren’t employed by or members of the business, but rather they have a vested interest in its activities and its financial performance.
What are 4 examples of internal stakeholders?
- Owners/Shareholders
- Managers
- Employees
- Board of Directors
What are 4 examples of external stakeholders?
- Suppliers
- Consumers
- Lending institutions
- Community
- Competitors
- Government
What do owners/shareholders do? (INTERNAL)
- Provide capital to allow the business to expand
- Expected to attend general meeting to receive annual reports and elect directors
- ensure the managers are fulfilling the objectives of the business and are using resources efficiently
What does the Board of Directors do? (INTERNAL)
- Develop strategies for the company to reach the agreed company goals for sales, profits, and company value.
- To decide how business profit and capital contributions by the owner should be invested to achieve the most profit.
- To ensure that the activities of the business and its financial statements are in accordance with the government regulations.
What do the managers do? (INTERNAL)
- To maximize profit or make maximized returns on investments made by the owners into the business.
- Ensure the employees are productive and also treated fairly
- Ensure that the goals of the owner and the Board of Directors are achieved in growing the business
What do the employees do? (INTERNAL)
- they provide manual and other labour services to the company to produce goods and services for the customers/to allow goods and services to be provided for the customers.
- meet the conditions and requirements of the employment contract.
- to cooperate with management in all reasonable requests.
What do suppliers do? (EXTERNAL)
- to supply goods and services ordered by the business in the time and condition as laid out by the purchase contract or the suppliers’ service agreements.
What do consumers do?
- They purchase goods and services from businesses to provide revenue (from sales which allows the business to function) to make profit and expand the business
- To provide feedback to the business on the performance of the product.
- Expected to be honest and not make any false claims about poor service or faulty goods.
What do lending institutions do?
- Ensure businesses can repay loans
- Provide financial assistance to businesses in the form of loans or financial advice
What does the community do?
- cooperate with the business when reasonable to do so on expansion and other plans
- meet reasonable requests from business for local services
- Ensure that the business within the community operates within the law and contributes towards the development of the community
What do competitions do?
- stimulate competition for sales and market shares
What does the government do?
- To ensure that the business publishes truthful and accurate financial reports
- To ensure that the business pays all taxes
- To ensure the business follows the laws of the country
What is the responsibility of someone in advertising and public relations?
They must develop sales and promotion strategies for the business.
What is the responsibility of a compliance officer?
They ensure that all business activities follow the national and international laws and regulations, professional standards, and accepted business practices within the business industry
What is the responsibility of a strategic planner?
They define a company’s direction, and ensure that the resources, processes or structures are in place to achieve established goals.
What is the responsibility of an Educator?
Deliver instruction to business students.
What is the responsibility of an Information officer?
They must obtain, organize and distribute information internally to staff, and externally to the general public and customers, via varied forms of media
What is the responsibility of a web designer?
A web designer conducts research to help business(es) create a unique web design strategy that will generate sales.
What is an entrepreneur?
An entrepreneur is someone who starts a business in the hope of gaining profit by taking risks to create change and satisfy the wants and needs of customers.
What is resource personnel?
They deal with the management of employees
What is a software developer?
A person that develops computer programs to facilitate business processes and activities.
What is a web planner?
A web planner plans, creates, and codes web pages using both technical and non-technical skills to create a website that meets customers’ needs
What is Ethics?
Ethics are beliefs and principles about what is ‘right’ and ‘wrong’ behaviour or actions
What are legal issues?
Legal issues are activities guided by the country’s laws and regulations
What’s the difference between legal and ethical issues?
Legal issues are based on written laws and ethical issues are based on opinions of what is right and wrong
Ethical and Legal parts of a business are?
- Registering the business
- The adoption of an organisational code or ethics
- Policies on environmental issues
- Handling of personal information
What are the effects of customers and advertisers on misleading advertisements from businesses?
The customers will waste their money that can be spent on a beneficial product and the advertiser will face financial and legal repercussions
What is the effect on the government when businesses withhold their taxes?
The government loses revenue that they need to provide services for the country.
Why do businesses (mainly factories) find it easier to harm the environment with waste disposal?
It is cheaper and more profitable for them.
When businesses earn money illegally…
The money can not be legally recorded in business transactions.
The effect of money laundering on the government is…
They’ll have an inaccurate measure of the flow of money and their plans for the country will not be as effective.
