Functional Areas Within Business
All businesses need to be well organised to achieve their aims and objectives. Certain functions must be done regularly and these are usually grouped into specific types of activities. Unless all the key functions are carried out, the business will not operate efficiently. Key functions are split up into seven functional areas. Each has a specific purpose. Human Resources- Relates to people who work for the organisation. This department deals with the working conditions and training needed for the staff at Sainsbury’s. They are in control of providing all staff with a safe working environment.
They decide whether individuals get promotions or bonuses for the work they have done all year. You would contact the human resources department of a business if you are applying for a job. They would be in charge of organising staff training days. Finance- Responsible for checking the money going in and out of a business. If there are problems, action must be taken swiftly. Computers and IT mean that financial transactions can be recorded immediately and analysed. They prepare accounts, pay wages and salaries to staff and obtain capital and resources.
They prepare accounts by making sure every single bit of money is accounted for in receipts and they also make sure that, suppliers and employees get paid. Administration and IT support- All businesses receive information daily in many different ways. This must be dealt with quickly so that customers and suppliers get prompt responses. Each business also generates its own paperwork which must be stored safely in case it is needed again. Computers are an essential part of any business as they are used for many administrative tasks.
This is essential for the business because computers are needed to communicate within the business and if they are not working then IT support will repair this problem quickly and efficiently so that business can continue as normal. They are responsible for clerical work, cleaning and maintenance, health and safety, security and support for software applications, electronic communications and electronic transaction. Operations- Responsible for producing goods and services by making the best of resources. In a business providing a service, the operations manager is responsible for making sure everything runs smoothly.
They are in charge of finding raw materials, equipment, like computers and office supplies and they are also in charge of finding new areas to build new stores. They obtain resources and organise them. Marketing and Sales- Responsible for making sure customers know about the business. This may include market research, advertising and sales promotions, the creation and development of a website or web store. The sales department is responsible for selling the items to the customer and keeping sales records. Market research aims is to find out customers’ needs and views on potential new products and services and existing products and services.
Advertising includes publicity campaigns, sales promotions, personal selling and promotion. Sales aim to make direct contact with the buyer to convert possible interest into a sale. Customer Service- Provides information, advice and after-sales service, and deals with customers’ complaints. Staffs needs to know about consumer laws which are designed to customers’ rights. Customers are important because without revenue the business would eventually fail. They provide information to customers on different aspects of the business, they give advice to customers, they provide credit facilities, deliver goods and provides after-sales services.
Research and Development- This is concerned with new product developments and improvements to existing products and adding to existing lines. They may be developed because of technological or scientific advantages, changes in customer buying behaviour or because someone has a good idea. The aim is to work together with designers to develop a usable product that can be manufactured at a reasonable cost and sold at a competitive price. Sainsbury’s aim to continually improve product design and quality. All of these key functional areas have to work together because if they don’t Sainsbury’s would not run smoothly.
Without Customer Service customers would not have a place to make complaints and receive advice and information, this in turn would not get good feedback since customers would have nowhere to ask about the business and express their concerns and if they got no feedback from customers then how can Research and Development make products even better for the customers, using their feedback. If there was no Research and Development there would also be no need for Operations because there would be no need for materials to make new products.
If there were no Operations then Sainsbury’s could not open up more stores and expand their business. Then Sainsbury’s would have no money and then there would be no Finance department which means no business. Communications: Communications is the sending and receiving of messages between 2 or more individuals, groups or organisations. Internal Communication is the sending of a message sent to a person working inside a group or an organisation. They use intranet as a type of internal communication. External communication is the sending of a message to another business or organisation outside of the company.
They use other means to communicate to external influence via email or telephone calls. It is important to communicate within the business because the business would fall apart if they do not communicate decisions made within the business. If they said that they want to do a 2 for i?? 2 promotion but did not tell the people who would have to put the offer into the system or the people who would put the stickers onto the products then the promotion would not be followed through and then this would upset customers if they were advertising this offer but not actually following it through.
Also if they didn’t communicate about one promotion to other Sainsbury’s stores then the other stores would not do the promotion which would upset customers in other areas. If communication doesn’t happen the Sainsbury’s would not operate efficiently. There are different types of communication, which is very important for every business because if a business does not communicate with suppliers then suppliers will not deliver the different things that the business needs.