Business Functions

Business Functions

1. work towards the fulfillment of the business' goals

   • be coordinated so that they have common purpose
     • Operation management
       • all activities in which managers engage to produce goods and services
         • responsible for transforming inputs into outputs
           • inputs are resources used in production process which include raw materials, capital equipment, labor, information, time, and money
           • outputs are the finished goods and services
             • Transformation
               • Elaborately Transformed Manufacturers
               • Simply Transformed Manufacturers
         • influence the quality, cost, and availability of goods and services
         • characteristics of operation management depends on the type of the business (manufacturer that produces tangible (physical) goods or service organization that produces intangible goods (services))
         • Quality management
           • strategy that a business uses to ensure that its product meets consumer expectation
           • Quality control
             • inpections in the production process to check for problems
           • Quality assurance
             • a system where a business achieves a set of standards in production
           • Total quality management
             • ongoing business commitment to excellence that is applied to every aspects of business operation

2. Marketing management

   • marketing is a total system of interacting activities designed to plan, price, promote, and distribute products to customers
   • marketing concept
     • consumer's needs and wants are met while achieving business' goals
   • target market
     • group of customers to which a business intends to sell its products
       • approaches
         • mass marketing
           • large range of consumers
         • market segmentation
           • total market is subdivided into groups of people who share common characteristics
         • niche market
           • narrowly selected market
   • marketing strategies
     • actions undertaken to achieve marketing goals through the marketing mix
     • product
     • price
     • promotion
     • place

3. Financial management

   • Accounting
     • financial management tool that is involved with the recording and analysis of all the business' financial transaction
     • cashflow statement
       • from operating activities
       • from investing activities
       • from financing activities
     • income statement
       • summary of the income earned and the expenses incurred during trading period
     • balance sheet statement
       • main elements: assets, liabilities, and owner's equities
       • shows a business' overall financial stability
   • how business funds its activities

4. Human Resource management

   • effective management of the formal relationship between the employer and employee
   • human resource cycle

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