Business functions
•Human resources
•Sales and marketing
•Operations
•Customer service
•Finance and accounts
•Administration and IT
Human resources
•Recruitment and selection
•Staff retention
•Motivation
•Discipline
•Training and development
•Health and safety
Sales and marketing
•Sales strategies
•Pricing decisions
•Promotion activities
•Market research
•Sales team
•Product or service development
Operations
•Buying stocks
•Planning travel operations
•Monitoring costs
•Future business planning
•Efficiency
Customer service
•Dealing with customer enquiries
•Advising customers
•Monitoring service delivery
•Dealing with customer complaints
•After-sales service
Finance and accounts
•Cash flow: monitoring costs and revenues
•Preparing accounts
•Raising finance for investment
•Communication with other areas of firm
Administration and IT
•Internal business communications
•Clerical work
•Telephone systems
•Reservations database
•Company Web site
•Email system
Management control
•Authority – the right to make decisions and perform tasks
•Span of control – the number of people for whom a supervisor/manager is responsible
•Chain of command – how the layers of authority are organised in a firm
Management control 2
•Hierarchy – who is responsible for whom
•Empowerment – responsibility to make decisions is given to all
•Delegation – authority passed from a superior to a subordinate
Ways to structure a business
•By function: arranging the business according to what each section or department does
•By product or activity: organising according to the different products made
•By area: geographical or regional structure
Ways to structure a business 2
•By customer: where different customer groups have different needs
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•By process: where products have to go through stages as they are made
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•What are the advantages/disadvantages of different types of business structure?
Functional structure
Advantages
•Specialisation – each department focuses on its own work
•Accountability – someone’s responsible for the section
•Clarity – know your and others’ roles
Disadvantages
•Closed communication could lead to lack of focus
•Departments can become resistant to change
•Coordination may take too long
•Gap between top and bottom
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