What Are The 8 Business Functions? A Simple Explanation | Introduction to Business Studies
Summary
TLDRThis 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.
Outlines
📈 Overview of Business Functions
This paragraph introduces the eight essential business functions that are crucial for the successful operation of any business. These functions include General Management, Administration, Human Resources, Marketing, Financing, Public Relations, Purchasing, and Production. Each function plays a distinct role in the organization, from strategic decision-making by General Management to the daily operations handled by Administration. Human Resources focuses on employee management, while Marketing identifies and meets customer needs. Financing oversees the financial health of the business, Public Relations maintains the company's image, Purchasing ensures the availability of necessary materials, and Production transforms inputs into outputs. The paragraph also highlights the responsibilities of each function with practical examples, such as a CEO's role in General Management or the HR department's tasks in a software company.
🛒 The Role of Purchasing and Production in Business
The second paragraph delves into the specific roles of the Purchasing and Production functions within a business. Purchasing is responsible for acquiring the necessary materials and supplies for the business operations, ensuring cost-effective deals and timely deliveries. It involves activities like sourcing suppliers, negotiating contracts, and maintaining supplier relationships. The Production function, on the other hand, is tasked with creating the company's products or services, converting inputs into outputs. It includes designing, packaging, and displaying products in a way that is appealing to customers and facilitating transactions. The paragraph concludes with a call to stay curious and engaged in learning more about business operations.
Mindmap
Keywords
💡Business Functions
💡General Management
💡Administration
💡Human Resources (HR)
💡Marketing
💡Financing
💡Public Relations (PR)
💡Purchasing
💡Production
💡Efficiency
💡Customer Needs
Highlights
Business functions are the main activities that businesses need to perform to operate successfully.
In a large company, each function may have its own departments such as HR, Finance, or Marketing.
Small business owners may handle all duties including hiring, finances, market research, and advertising.
There are eight business functions: General management, Administration, Human Resources, Marketing, Financing, Public Relations, Purchasing, and Production.
General management is responsible for supervising all business operations and making important decisions.
Administration carries out support tasks such as communication, data processing, and information management.
Human Resources (HR) is responsible for finding suitable employees and managing payroll, training, and conflict resolution.
Marketing involves conducting market research, identifying customer needs, and creating awareness through promotion.
Financing handles the business's money, including acquiring funds, managing expenses, and ensuring financial health.
Public Relations (PR) manages the company's reputation and maintains a positive image with stakeholders.
Purchasing is responsible for sourcing materials, negotiating contracts, and maintaining supplier relationships.
Production turns inputs into outputs, creating products or services that a company sells.
General management ensures that all business functions work harmoniously together for efficiency and profitability.
The CEO of a restaurant chain is part of General management, making decisions on expansion and profitability.
I.T is part of Administration, dealing with data and supporting the business's technological needs.
HR in a software company is responsible for posting job adverts and resolving co-worker disagreements.
Marketing uses questionnaires and surveys to identify customer needs and sets suitable prices for the target market.
A finance team in a clothing retailer monitors sales, expenses, and profits to determine the company's financial health.
PR responds to customer complaints and crises, maintaining the company's image and addressing food safety concerns.
The production function in a toy factory designs, manufactures, and packages toys, while in a toy store it includes customer service and transactions.
Transcripts
what are the eight business functions
business functions are the main
activities that businesses need to
perform in order to operate successfully
in a large company each function may
have its own departments such as the HR
Finance or marketing departments but in
a small business the owner may handle
all the duties
including hiring and firing employees
keeping track of company finances
conducting market research and managing
advertising campaigns
in business studies we learned that
there are eight business functions
namely
General management
Administration Human Resources marketing
financing public relations
purchasing and production
General management
General management is responsible for
supervising all business operations
they make the important decisions which
ensure that all the various business
functions were harmoniously together so
that the company can run as efficiently
and profitably as possible
the CEO of a restaurant chain would form
part of General management they would
decide things like opening new locations
creating new menu items and ensuring
that each restaurant is making a profit
Administration
Administration carries out a variety of
support tasks that help the business run
smoothly
administrative duties include tasks such
as communication both written and verbal
Gathering and processing data as well as
storing and sharing information
it includes typing documents scheduling
meetings recording minutes handling
business inquiries and creating visitors
at reception
I.T also forms part of administration as
it deals with data
Human Resources human resources or HR is
responsible for finding the most
suitable employees and keeping them in
the business it manages things like
leaves payroll skills training and
conflict resolution
in a software company for example
the HR would be responsible for posting
job adverts when they need new software
developers ensuring employees get their
salaries on time and helping to resolve
disagreements between co-workers
marketing
marketing involves identifying customer
needs by conducting market research and
meeting those needs by deciding on a
product that satisfies the need at an
attainable price
it also includes promotion which creates
public awareness of the product and a
desire to buy it
activities include using questionnaires
and surveys to identify customer needs
and desires
ensuring that the prices are suitable
for the target market and using adverts
and other strategies to attract
potential buyers
note
advertising and promotion are only a
component of marketing there is more to
marketing than just advertising
financing
the financial function is responsible
for handling the money of the business
they acquire funds and manage their
utilization thereof this includes
keeping track of income expenses and
profits and ensuring that the various
departments are sufficiently funded and
the business's finances are healthy
in a clothing retailer for example
the finance team would monitor how much
money is made through clothing sales how
much is spent on rent salaries and other
expenses and determine whether the
company is making a profit
public relations public relations or PR
manages the company's reputation
their job is to create and maintain a
positive image of the business
internally with employees and externally
with the public and other stakeholders
do this by managing social media
accounts publishing press releases
responding to crises and customer
feedback as well as publishing internal
newsletters
restaurant accidentally serves a spoiled
dish and a customer complains online
the pr would respond with an apology
explain how they're fixing the issue and
reassure other customers that they take
food safety seriously
purchasing
the purchasing function is responsible
for getting the materials and supplies
that a business needs to make its
products or provide its services
they find the best deals and make sure
everything arrives on time
activities include sourcing suppliers
for raw materials trading goods and
office equipment
negotiating long-term contracts and
maintaining healthy relationships with
their suppliers
thank you production
the production function is responsible
for creating the products or services
that a company sells
it is way inputs are turned into outputs
in a toy factory the production function
would design a symbol and package the
toys
in a toy store it would include
displaying the shelves in an attractive
way helping customers find products and
completing transactions
thank you for watching this video
I hope you found this informative and
engaging
stay curious
keep learning and I look forward to
sharing more knowledge with you
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