LO2-Understand How The Functional Area Of Business Work Together To Support The Actives Of The Businesses Flashcards
Function area Definition
A team of employees who have similar skills and expertise in one area of the business
9 Examples of a Functional area
Human Resources, administration, customer service, finance, marketing, operation management , sales, business support service, purchasing/ procurement
Why do businesses have functional areas, unlike smaller businesses?
They do not have the fund to employ so many people for the 9 functional areas which means they are way less advanced than the bigger businesses.
Advantages of a functional area
Easier to see trends in the market More organised Less work for the owner More people focused on one task Easier to manage time as one individual will have less work to do Better quality of work Better communication
Disadvantages of a functional area
More employees to pay
Takes time to organise
What do Finance do?
Control the finance of the business like:
Making and receiving payments on behalf of the business
Statement of financial position and income statements
Monitoring and analysing financial performance
Paying employees
What do Marketing do?
They identify customer needs and work with research and development to see if products and services are designed to customers needs. They also decide how to distribute products and pricing strategies. They promote as well.
What do Sales do?
They are responsible for communicating with customers. They are usually in direct contact with them and they have to provide excellent customer service and have to be knowledgeable about the products and service offered. They can be face to face or they can communicate virtually.
What do Human Resources do?
They are responsible for recruitment of new employees, identifying training needs, ensuring that appropriate pay and benefit system are in place, establishing company policies. They do everything that helps organise the business in a way.
What do the Operations Management do?
Responsible for transforming raw (inputs) into finished goods/ services (output). This process can rely on labour or technology and machinery depending on the business. Their responsible is to ensure the quality standards are met.
What do Customer Service do?
Responsible for cooperating with customers on a day-to-day basis. They should be knowledgeable, helpful and calm with customers. First contact if customer has a complaint and they manage expectations.
What do Business Support Services do?
Responsible for running the business with producing contracts, maintaining equipment, arranging meetings, organising travel plans and providing technical IT support. They organise the business pretty much.
What do Research and Development do?
These employees have to be highly skilled. The develop new products and services in response to market research. They are the key to a business staying competitive and profitable in the market.
What do Purchasing/ procurement do?
They provide the business with raw materials, goods and services needed in the day to day running of the business.
What is spam of control?
How many people you are in charge of
