Business Functions
and Organisation
chapter3
1st mid term : 1436-1437
Business Functions
Human Resources
Sales and Marketing
Research and Development
Production/Operations
Customer Service
Finance and Accounts
Administration and IT
IB Business & Management
Human Resources
Recruitment and retention
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Job descriptions
Person Specifications
Dismissal
Redundancy
Motivation
Professional development and training
Health and safety and conditions
at work
Liaison with trade unions
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Sales and Marketing
Market research
Promotion strategies
Pricing strategies
Sales strategies
The sales team
Product – advice on new product development,
product improvement, extension strategies,
target markets
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Research and Development
New product development
Product improvements
Competitive advantage
Value added
Product testing
Efficiency gains
Cost savings
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Finance and Accounts
Cash flow
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Monitoring income/revenue
Monitoring expenditure
Preparing accounts
Raising finance
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Shares
Loans
Links with all other functional areas
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Production/Operations
Acquiring resources
Planning output – labour, capital, land
Monitoring costs
Projections on future output
Production methods
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Batch
Flow
Job
Cell
Efficiency
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Customer Service
Monitoring distribution
After-sales service
Handling consumer enquiries
Offering advice to consumers
Dealing with customer complaints
Publicity and public relations
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Administration and IT
•Managing estates
•Reception
•Clerical work
•Overview of quality control
•Use of IT systems
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Business Organisation
Organisation by type
Global businesses – complex organisation
structures
National – organisation possibly stretches
throughout the country
Regional – could be through a county or
wider area (North West, South East, etc.)
Local – small organisations serving local
area or community
IB Business & Management
Key ideas: Why organisation is
necessary.
Authority
Span of control
Chain of Command
Hierarchy
Delegation
Empowerment
Delayering
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Organisation Charts
Hierarchical Structure
Managing Director
Marketing
Director
Sales Director
A
B
C
D
Market
Research
Finance Director
Strategy Purchasing Sales
Manager Manager
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Accounts
Manager
Organisation Charts
Pyramidal Structure
MD
Senior
Management
Middle
Management
Workers
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Organisation Charts
Centralised/Entrepreneurial
Finance
R&D
Production
MD
Marketing
Sales
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Organisation Charts
Collaborative
Sales
Accounts
Marketing
Production
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Organisation Charts
Circular/Flat
Marketing
Finance
Sales
Production
R&D
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Organisation Charts
Matrix Structure
Marketing
Sales
R&D
Project
HR
Production
Finance
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Entrepreneurial
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Organisation Charts
Changes to business structures
Linked to new thinking on leadership and
management
Less hierarchical
Emphasis on communication
and collaboration between sections
Global businesses – more complex
structures
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By…
A business can organise by function.
Managing Director
Marketing
Director
Sales Director
A
B
C
D
Market
Research
Finance Director
Strategy Purchasing Sales
Manager Manager
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Accounts
Manager
By…
Or by product
Managing Director
Marketing
Director
Sales Director
Mars Mars
Mars
finance sales mkt
Mars
prod
Snickers
finance
Snickers
mkt
Snickers
Snickers
sales
prod
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Finance Director
M&M M&M M&M
M&M
prod
finance sales mkt
By…
Or by Geography…
Managing Director
Europe
Director
Taiwan Director
Taiwan
Sales
Taiwan
marketing
Taiwan
Finance
Taiwan
prod
Europe
Sales
Japan Director
Europe
marketing
Europe
Finance
Europe
prod
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Japan
Sales
Japan
marketing
Japan
Finance
Japan
prod