Major Functional Areas of Business
1. Marketing – this is all about identifying and meeting customer needs. The team
members of a marketing prepare all the materials used by the sales function, such
as brochures and price lists.
They also manage:

Outside advertising

Promotional activities

Channels of Distribution

Product Positioning (image, functions)
2. Finance/Accounting - the function of the finance/ accounting is to track
organizational performance, pays bills, collects money and calculate payroll
amounts. Accounting team members take the company’s sales and cost information
and create financial statements and reports.
Finance/Accounting function includes working with:

Leverage

Cost of Capital

Working Capital

Receivables

Financial Control

Lines of Credit
3. Production/Operations – they are responsible for turning inputs into finished
outputs through a series of production The Production Manager is responsible for
making sure that raw materials are provided and made into finished goods
effectively.
The decision involved here are:

Product Quality

Location

Layout Strategy

Job design

Maintenance

Product Design
4. Sales - It includes the planning, implementation, and control of sales programs, as
well as recruiting, training, motivating, and evaluating members of the sales force. In a
small business, these various functions may be performed by the owner or by
the sales manager.
The main purpose of functional areas is to ensure that all-important business activities
are carried out efficiently. This is essential if the business is to achieve its aims and
objectives.