Understanding the nature and purpose of business

'Business is the creation of a customer' - Peter Drucker.

1.1 Introduction to business functions

• Marketing - advises the business on consumer trends, and on the attitudes and purchasing habits of the customer - and decides how to advertise and promote new and existing brands.
• HR - Managers of the firm's staff plan for and deal with recruitment, training, financial incentives, equal opportunities, redundancies and dismisal.
• Finance - helps to identify what can be afforded and therefore what budgets to set for each of the other functions; they also manage depatment spending.
• Operations - manages the supply chain that starts with buying materials and components, then manufactures a finished product and delivers it to the customer.

1.2 Why businesses exist

Businesses exist simply because human spirit and a sense of adventure lead people to 'show what they can do' and want…