Functional areas of Business Flashcards
What are the functional areas of businesss?
- Production
- Finance
- Personnel
- Marketing
- R & D (Research and Development
What is Production?
The process by which raw materials are transformed into goods and services.
What does production involve?
- Research and development
- Purchasing raw material
- Designing goods
- Manufacturing the company’s product
- Controlling the quality of production
- Storage of raw material and finished goods
What is Finance?
►. . . is required to form a business and fund its operations
► . . . is carried out by the finance or accounts department
What is finance responsible for?
- Preparing the company’s accounts
- Making payments and collecting money on
behalf of the company - Advising management on financial matters
- Establishing credit controls
What is Marketing?
The marketing function of business aims to anticipate customers’ demand in order to produce the right products profitably.
The marketing department is responsible for?
- Market Research
- After sales service
- Pricing
- Distribution
- Designing the product
- Publicity
- Sales Promotion
What is Personnel/Human Resource?
The personnel function of a business is to provide employment and seek the interest of the employees.
What is the Personnel/Human Resource department responsible for?
► Recruiting staff
► Promotion of workers
► Maintaining a good industrial climate
► Social interests – maintaining clean environs
► Training staff
► Discipline of workers
► Maintaining staff records
► Worker’s welfare – sick and holiday leave
What is the R & D (Research and Development) deportment responsible for?
- New product research
- New product development
- Existing product updates
- Quality checks
- Innovation
