Dhiya Naidoo
- Created by: Dhiya Naidoo
- Created on: 06-08-20 19:15
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- 8 BUSINESS FUNCTIONS
- General Managent Function
- Marketing Function
- Human Resources(HR)
- Public Relations
- Financial Function
- Purchasing/Procurement
- Production /OperationManagement
- Administration/Infomation Management
- 1. General Marketing Function
- Plan , Organise, Lead, Control
- 2. Marketing Function
- Product must satisfy the needs of consumers
- Product must be sold at reasonable price that consumer is prepared to pay
- Goods must be distributedto a place that is convenient for consumer.
- Consumer must be informed (marketingcommunication) about the availabilityof product.
- 3. Human Resources (HR) Function
- HR department has to determine how many workers and what levels of skills are required in the business.
- 4. Public Relations (PR) Function
- Public relations include all efforts to build relationships with institutions outside the business.
- eg: manufactures, suppliers. wholesalers, retailers, government departments, consumers and media.
- Aims of Public Relations (PR)
- Main aim of PR department to improve images of enterprise by conveying positivemessages to outside world.
- As a result of good reputation sales and therefore profitability of business will increase
- Important that PR not only aimed at the target market but at all people and businesses in external environment
- Public relations include all efforts to build relationships with institutions outside the business.
- 5. Financial Function
- Entrepreneurs need capital (money) is needed to start up a business. Capital includes goods such as machinery and equipment.
- Entrepreneur calculate how much capital is requires to start up the business. (Start-up costs, machinery, raw materials)
- 6. Purchasing/Procurement Function
- Purchasing function buys goods and services that are needed by other departments in the business.
- Important goals of purchasing function is to help the business to buy good quality products at the lowest possible prices.
- Quality of the product sold will be determined by looking at the needs of the target markets. business could sell slightly lower quality product at lower price if target market is in lower income group.
- Goods and services bought from different suppliers and important to choose supplier carefully in order to make sure business has reliable supply of goods.
- The Auxiliary Function
- Marketing research
- Grading and standardisation
- Storage
- Transport
- Sorting Bridges
- Financing
- Insurance
- Actual Sales
- 7.Production/Operations Function
- Production is the combination of factors of production(natural resources, labour, capital and entrepreneurial skills) in order to provide the right product to satisfy needs of consumer.
- Entrepreneur must make sure he combines the other three factors of productionin best possible manner to maximise profit of business.
- 8. The Administrative Function/Infomation Management
- Administrative function is responsible for collecting all data in the business and the business environment.
- Data processed into information, the infomationstored and made available to management when needed.
- Administrative function handles all paperwork and record-keeping in the business.
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