Functional Areas of Business Organization and Employee Skills

TITLE

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Explaining various functional areas of business organization....................................................3
Describing skills needed by employee to perform functions of organization effectively...........5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
In order to start a business, a person must have a business plan which will help in
providing directions about how business will be managed. The present report is based on
acquiring local company, that is, IOM Electronics Ltd. Report will discuss various functional
areas required in business organization. Further, it will describe different types of skills that are
needed n employees to work effectively.
Explaining various functional areas of business organization
Many business operators like John becomes so excited about creating own business that
they avoid important pre-planning (Morakanyane, Grace and O'Reilly, 2017). A plan will help to
start business successfully and understanding all the aspect of running a business. Generally,
there are six functional areas of business management that planners should consider before
operating an organization.
Strategy
First of all, business operator must create a vision & mission statement which will be the
base of all further activities that want to conduct. Strategists should also analyse and interpret the
competitive forces prevailing in market so that any opportunities can be discovered and company
can take first mover advantage (Satyro and et.al., 2017). Also, IOM Electronics Ltd. can identify
any threats to take necessary actions against them. Such an analysis can be done through SWOT
or PESTEL which will give a clear and better picture of market forces. It will help in formulating
strategies related to product pricing, positioning, differentiating, etc. Strategy can be formulated
on three levels i.e. corporate level (acquisition. growth, etc.), business level and functional level
(allocation of resources strategy).
Marketing
Planners should also determine thoroughly potential customers and thoroughly
understand them by acknowledging their needs and demands. Market planning helps in defining
a right marketing strategy to design & develop products for offering. IOM Electronics Ltd. can
adopt the approach of “out there” by studying and analysing the need of customers in market first
and then producing products accordingly to answer those needs. Company can have function of
marketing by not just selling goods and services but also bringing value to their customers
(Putsenteilo, Nyanko and Karpenko, 2018). This function is also concerned with promotions like