Unit 1 business and the business environment l/508/0485 table of contents



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UNIT 1 BUSINESS AND THE BUSINESS ENVIRONMENT
Production function (first line): The primary reason for a business to exist is to provide products or services to consumers and earn a profit. Employer here creates or obtains products or services for sale. This includes: Production of obtaining raw materials; Processing; changing the form of the materials (paper, metals, etc.); Services (salons, tax returns, travel agents, etc.), among others. But the organisation I work with focus on rendering services to the public.
Operations function: Employer here oversee the ongoing activities designed to support the primary function of a business and to keep a business operating efficiently. People here regulate the ongoing activities designed to support the primary function of a business and to keep a business operating efficiently.
Accounting and finance function: Employees here plans and manages financial resources and maintains records and information related to businesses' finances.
Management and administration function: These involve developing, implementing, and evaluating the plans and activities of a business.
Marketing function: This centers upon satisfying exchange relationships. It is important for business. Employers here make sure products and services are available to consumers and to ensure that effective exchanges occur. They also ensure coordination of business functions
However, each of the functions of business is dependent on the other functions if the business is to be effective. Products can be produced, but if the company is not operated or managed effectively, if adequate records are not maintained, or if marketing is not successful, the products will not be sold at a profit.


ORGANISATIONAL STRUCTURE
Functional Organisational Structure
One of the most common types of organizational structures, the functional structure departmentalizes an organisation based on common job functions. An organisation with this structure, for instance, would group all of the marketers together in one department, group all of the salespeople together in a separate department, and group all of the customer service people together in a third department. The functional structure allows for a high degree of specialisation for employees, and is easily scalable should the organization grow. Also this structure is mechanistic in nature -- which has the potential to inhibit an employee's growth -- putting staff in skill-based departments can still allow them to delve deep into their field and find out what they're good at.
Disadvantages
Functional structure also has the potential to create barriers between different functions -- and it can be inefficient if the organization has a variety of different products or target markets. The barriers created between departments can also limit peoples' knowledge of and communication with other departments, especially those that depend on other departments to succeed.

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