Functions of a Business

Question 1

What is the difference between marketing and public relations?

Answer 1

Marketing is focused on promoting, interaction of four policies in order to make a profit and achieve objectives of the organisation. Public relations is focused on creations and maintenance of image the company as a whole.

Question 2

What is the importance of the eight business functions?

Answer 2

All 8 happen simultaneously. All functions are linked. If one fails the business fails.

Question 3

What does purchasing/procurement function do?

Answer 3

They buy goods/services needed by all departments for example stationery, parts, equipment, materials etc. They have to choose supplier and quality of the good.

Question 4

How do we indicate the quality of goods?

Answer 4

Quality is indicated by the brand name or trademark.

Question 5

What is a trademark?

Answer 5

A picture/symbol used to distinguish the product.

Question 6

What does SARB stand for?

Answer 6

South African bureau of standards.

Question 7

Why are after sales support services important?

Answer 7

They handle warranties, installation, delivery and services.

Question 8

What is importance of production?

Answer 8

Confines of factors of production in the way the business will provide the right product, at the right time, the right quantity and the right place.

Question 9

What are FOUR factors of production?

Answer 9

Capital, entrepreneurship, land and labour.

Question 10

What is the importance of Human Resources?

Answer 10

It deals with the staff (recruitment, hiring, training, paying, firing)

Question 11

What do the Human Resources functions have to understand?

Answer 11

Labour Laws

Question 12

What is the administration function used for in a business?

Answer 12

Responsible for collecting data . Data is processed into information and stored. Handle paperwork and record-keeping.

Question 13

What is the general management function used for?

Answer 13

Plan the future, organise it in order to get resources needed, lead workers to make good profit and control all activities in relation with plans?

Question 14

What must the Manager formulate in order to plan for the future?

Answer 14

Vision, mission, goals, objectives, strategies.

Question 15

What are the FOUR policy instruments of marketing?

Answer 15

Price policy, product policy, place policy, promotion policy (advertising, personal sales, sales promotion, publicity)

Question 16

Why do we do market research?

Answer 16

To determine what product is in demand, price consumers are willing to pay, where product must be sold and best method of communication.

Question 17

What doe the public relations function do?

Answer 17

Involves activities that influence opinions and mutual understanding between enterprise and the public. It is about building the image of the business as a whole.

Question 18

What is the importance of public relations?

Answer 18

Promotes goodwill and communication between the company and consumer. Good public relations builds relationships with your customers. Public relations is a component of your marketing strategy; a company will be more profitable through communication and relationships with customers

Question 19

What are the aims of the public relations function?

Answer 19

Primary: maintain a favourable image.
Secondary: sales promotion.

Question 20

What are the duties of PRO?

Answer 20

Draws up pubic relation policies, keeps stakeholders informed of activities, keeps management informed of good or bad events, explains changes/reason to public, builds good relationships with media.