What Are The 8 Business Functions? A Simple Explanation | Introduction to Business Studies

Summary

This video script outlines the eight essential business functions necessary for a company's success: General Management, Administration, Human Resources, Marketing, Financing, Public Relations, Purchasing, and Production. It explains the role of each function, from the CEO's strategic decisions in General Management to the day-to-day operations in Administration. Human Resources focuses on employee management, while Marketing identifies and meets customer needs. Financing handles the company's money, Public Relations maintains the company's image, Purchasing ensures timely supply of materials, and Production transforms inputs into outputs. The script serves as an informative guide for understanding the structure and operations of a business.

Takeaways

• 📈 **General Management**: Oversees all business operations, making key decisions to ensure efficient and profitable business functioning.
• 💼 **Administration**: Performs support tasks like communication, data processing, and information management to keep the business running smoothly.
• 👨‍💼 **Human Resources (HR)**: Manages employee recruitment, retention, payroll, training, and conflict resolution to maintain a suitable workforce.
• 🎯 **Marketing**: Identifies customer needs through market research and meets those needs through product development and promotion strategies.
• 💰 **Financing**: Handles the financial aspects of the business, including income, expenses, profits, and ensuring adequate funding for all departments.
• 📢 **Public Relations (PR)**: Maintains the company's reputation by managing internal and external communications and responding to crises and customer feedback.
• 🛒 **Purchasing**: Secures materials and supplies needed for production or service provision, negotiating contracts and maintaining supplier relationships.
• 🏭 **Production**: Transforms inputs into outputs, responsible for creating the products or services that the company offers to customers.
• 🔍 **Market Research**: A crucial part of marketing, it involves using questionnaires and surveys to understand customer needs and desires.
• 📊 **Financial Health**: The finance function monitors income, expenses, and profits to ensure the business remains financially stable and profitable.

Q & A

What are the eight business functions that are essential for a business to operate successfully?

The eight business functions are General Management, Administration, Human Resources, Marketing, Financing, Public Relations, Purchasing, and Production.

What is the primary role of General Management in a business?

General Management is responsible for supervising all business operations and making important decisions to ensure that all business functions work harmoniously together for efficient and profitable operations.

Can you provide an example of a task that falls under the Administration function?

Administrative tasks include communication, data gathering and processing, storing and sharing information, document typing, scheduling meetings, recording minutes, handling business inquiries, and managing IT.

What does the Human Resources department handle in a company?

The Human Resources department is responsible for finding suitable employees, managing payroll, skills training, conflict resolution, and ensuring employee retention.

How does the Marketing function contribute to a business?

Marketing involves conducting market research to identify customer needs, deciding on products that meet those needs, and promoting the product to create public awareness and desire to purchase.

What financial responsibilities does the Financing function have in a business?

The Financing function is responsible for handling the business's money, including acquiring funds, managing expenses, tracking income and profits, and ensuring the financial health of the business.

What is the main objective of Public Relations in a business?

Public Relations aims to create and maintain a positive image of the business both internally with employees and externally with the public and other stakeholders.

What tasks are associated with the Purchasing function in a business?

The Purchasing function is responsible for sourcing suppliers, negotiating contracts, ensuring timely delivery of materials and supplies, and maintaining relationships with suppliers.

How does the Production function differ between a manufacturing and a retail business?

In a manufacturing business, Production involves creating the actual products, while in a retail business, it may involve displaying products attractively, assisting customers, and processing transactions.

Why is it important for a business to have all eight functions operating effectively?

All eight functions are crucial as they ensure the business runs smoothly, meets customer needs, manages resources efficiently, maintains a good reputation, and produces quality products or services.

How might the responsibilities of each business function vary between large and small businesses?

In large businesses, each function may have dedicated departments, while in small businesses, the owner might handle multiple functions, including hiring, financial management, and marketing.