Business

Functional Areas of Business

Management, operations, marketing, accounting, and finance are some of the functional areas that are required to run a firm. Let’s take a quick look at each of these topics.

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Management

Managers are accountable for the work performance of others. Management includes planning, organizing, staffing, directing, and managing a company’s resources in order to fulfil its objectives. Managers plan by establishing objectives and devising methods for accomplishing them. They plan actions and resources to guarantee that the company’s objectives are accomplished. They staff the organization with competent people and guide them to achieve organizational objectives. Finally, managers devise controls for analyzing the success of plans and choices and, if necessary, take remedial action.

Operations

All businesses must turn resources (such as labour, materials, money, and information) into goods or services. Some businesses, such as Apple, turn resources into physical items, such as iPhones, iPods, and Macs. Others, like hospitals, turn resources into intangible things like health care. An operations manager is the person who develops and controls the translation of resources into commodities or services. This person is also in charge of ensuring that the items are of great quality.

Marketing

Marketing is everything a firm does to understand its consumers’ requirements and produce products to fulfil those demands. Marketers create product benefits and characteristics, such as pricing and quality. They also decide on the best way to supply items and the best way to promote them in order to attract and retain consumers. They maintain client connections and make consumers aware of the organization’s willingness and capacity to meet their demands.

Accounting

Accountants provide management with timely financial data. Financial and management information is measured, summarized, and communicated by accountants. Accounting has two subfields. Financial accountants provide financial statements to help internal and external stakeholders analyze a company’s financial health. Managerial accountants produce data for internal use alone, such as reports on manufacturing material costs.

Finance

Finance is the management of a company’s funds. Do finance managers deal with difficulties like; How much capital is needed? Where will the funding come from? Will the money be reimbursed on time? What should it do with its funds? What plant and equipment investments are needed? How much money should go to R&D? What to do with extra cash? In the early stages of a business, when new owners commonly need to borrow money, solid financial management is critical.

IMPORTANT TAKEAWAYS

  • The owners, staff, and customers are the primary participants in a business.
  • External variables such as the economy, government, consumer trends, and public pressure all have an impact on businesses’ ability to be good corporate citizens.
  • The actions required to manage a business may be classified into five functional categories:
  • Management entails planning, organizing, staffing, directing, and regulating resources to accomplish organizational goals.
  • Operations are the process of converting resources (labour, materials, money, and so on) into goods.
  • Marketing is concerned with identifying and satisfying the demands of customers.
  • Finance entails the planning, acquisition, and management of firm money.
  • Accounting comprises the measurement, summarization, and communication of financial and managerial data.

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