Coordinating Key Business Functions
Coordinating Key Business Functions
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New in Stock - Preliminary Exam Business Report Samples (Band 6 Exemplar)
Interdependence of Key Business Functions:
Interdependence of Key Business Functions:
A business have 4 main functions. These divisional units each focus upon a specific activity of the firm. The firm’s organisational structure is usually based upon these units. Each of these functions must work together in pursuit of the goals of the firm. Interdependence is mutual reliance; decisions made in one function will affect the other functions.
A business is a single, organic entity that involves all 4 Key Business Functions simultaneously.
The artificial separation of a 'whole' business into these functions is only to aid structure and comprehension.
Understanding business is kind of like colouring in a circle.
It is hard to do it in a straight-line. It requires back tracking, leaps forward and repeated coverage of the same territory.
The best way to get this understanding is by clicking on the hyperlinks to other parts of the Year 11 course that are embedded in the text on each page. By traversing across the full terrain of the course, the development of a 'holistic' business intelligence will gradually emerge.
The actions / processes undertaken by the firm to produce output (either a tangible good, or an intangible service—typically a mix of both)
Sourcing inputs and materials, and adding value (transforming) them into something of value to the customer (another business, or the end consumer)
Ensuring that quality is maintained, that quantity of output is satisfactory and that costs are down (to maximise profits, to gain competitive advantage).
Interacting with target market (firm’s customers) to design a Product (the tangible good / intangible service) that will satisfy a need or want.
Developing strategies to maximise sales; these activities include market research, setting the right Price for the good / service, Promoting the firm’s good / service, and ensuring that customers can easily access the good / service (Place)
The 4 Ps! (Product, Price, Promotion, Place)
Managing the human element of the firm; the relationship between employees and the employer to ensure maximum return of investment in human capital.
Recruiting, training and retaining the best staff that can give the firm a competitive advantage over rival firms (best staff, best ideas)
Managing the administrative side of staffing (managing performance, paying wages, designing reward schemes, complying with legislation, managing contracts)
The financial aspect of the firm’s operations / marketing / human resources strategies: day to day accounting and monitoring of transactions.
The sourcing of finance to fund business activities (debt / equity); the management of cash within the firm; payment of staff, suppliers, and other expenses.
Monitoring business performance and shaping the direction of the firm on the basis of financial performance (profit / loss / growth / solvency)
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