Four Functions of Business
Production – The primary reason a business exists in a market economy is to provide products or services to consumers
and to earn a profit. The production function creates or obtains or services for sale.
Marketing – All businesses in a market economy need to complete marketing activities in order to make their products
and services available to consumers. These activities make up the marketing mix, which includes the following: Product,
Distribution, Price, Promotion. The goal is to attract as many customers as possible so that the product succeeds in the
marketplace.
Management – It is necessary for all businesses in a market economy to spend a great deal of time developing,
implementing, and evaluating plans and activities. Setting goals, determining how goals can be met, and deciding how
to respond to the actions of competitors is the role of management. Management also solves problems, oversees the
work of employees, and evaluates the activities of the business.
Finance – One of the first responsibilities of the finance id determining the amount of capital needed for the business
and how the capital will be obtained. The finance function also involves planning and managing the financial records of
the business.
Sandwich Shop
You are planning to open a sandwich shop. You begin to think about the four functions of business – production,
marketing, management, and finance. Describe how each function will apply to your business. Explain how the
functions will work together to ensure you run a successful sandwich shop.
Production:
Marketing:
Management:
Finance: