Functions and structures of businesses: Understanding the key functions and structures of businesses and their impact on business success.
Did you know that the structure and functions of a business are key determinants of its success? 🏢🔑
In this course, we will delve into the core aspects of business operations, focusing on the functions and structures of businesses, and how they contribute to business success.
Understanding the Key Functions of Businesses 📚🔍
Businesses, regardless of their size or industry, perform several key functions that are critical to their success. These include:
Operations: This involves the day-to-day activities of a business. For instance, a manufacturing company's operations might include producing and shipping products.
Marketing and Sales: This function involves promoting the business's products or services and selling them to customers.
Finance and Accounting: This function involves managing the business's finances, including budgeting, financial reporting, and investment decisions.
Human Resources: This function involves managing the business's employees, including hiring, training, and employee relations.
Information Technology: This function involves managing the business's technology infrastructure, including software, hardware, and networks.
Example: In a retail business, the operations function might involve managing inventory and customer service, the marketing and sales function might involve advertising and sales promotions, the finance and accounting function might involve budgeting and financial reporting, the human resources function might involve hiring and training staff, and the IT function might involve managing the business's website and online sales platform.
Comparing Common Organisational Structures and Their Impact on Business Operation 🏗️📊
Organisational structures define how tasks are divided, grouped, and coordinated in a business. The structure chosen can significantly impact business operations. Here are some common types:
Functional Structure: This structure groups employees based on their functions or roles. It's beneficial for businesses that have distinct and stable functions.
Divisional Structure: This structure groups employees based on product lines or projects. It's beneficial for large businesses that operate in diverse markets.
Matrix Structure: This structure combines the functional and divisional structures, with employees reporting to two managers. It's beneficial for businesses that need to be flexible and responsive.
Example: A business with a functional structure might have separate departments for operations, marketing and sales, finance and accounting, human resources, and IT. Each department would be managed by a department head who reports to the CEO.
In the next sections, we will explore the importance of operational control and how organisations work towards best practice. Stay tuned