04.07.09 Interdependance Notes Coordinating Business Functions 09

04.07.09 Interdependance Notes Coordinating Business Functions 09

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Unformatted text preview: Coordinating Business Functions Business Functions refers to the wide range of tasks that a business must perform in order to achieve its goals. All business functions should work toward the fulfilment of the business goals. Functions should have a common purpose and this is usually outlined in the mission statement. The prime function of a business is its core activity which is the main activity that a business is involved in and the reason for its existence. These activities can be divided into two categories: a. Core or Prime Function Activities – those activities that are directly involved in the production of goods and services. They are directly involved in creating or adding value as they pass through each stage of the production process, therefore, these activities and processes have primary importance in adding to the business’ value chain . b. Business functions or support services – these activities support the core activities in achieving the businesses prime function and goals. Coordinating the business functions depends on the goals of the business as well as the size and are often separated into different departments. Key functions require different skills and knowledge. The word division is used by businesses to describe this separation of business functions. This allows speation but makes coordination more difficult. Why would division of key functions make coordination more difficult? In small businesses the work areas often overlap. Eg Administrative assistant Salesperson 1,2,3,4 Manager salesperson 5 Accounts Administration Finance banking Sales Marketing Maintenance of clients Planning Organising & controlling the business Employment relations Sales and marketing Financial management Client Records The prime function of a business is its major or core activity. It is the business’ main task. Business functions help a business to achieve its prime function. Often the prime function is expressed as a Mission Statement . This statement identifies what the business hopes to achieve and the way to achieve it. What is the prime function of: a) Woolworths: _________________________________________________________ ______________________________________________________________________ b) Toyota: _____________________________________________________________ ______________________________________________________________________ c) Wenona: ____________________________________________________________ ______________________________________________________________________ What happens in the different function areas? Marketing Involves analysing the buying and selling process. It involves understanding why people buy the businesses good or service, pricing, product development, promotion and distribution. Value is added by this department by understanding the customers, and providing them with a product or service at a price and place where they are willing to purchase....
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This note was uploaded on 08/11/2009 for the course BUSINESS - taught by Professor - during the Spring '09 term at École Normale Supérieure.

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04.07.09 Interdependance Notes Coordinating Business Functions 09

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