Functional Areas of Business: Key Functions and Skills

This report analyzes the key functional areas of IOM Electronics Ltd., including marketing, human resource management, customer services, finance, research and development, and sales. It also discusses the different types of skills required by employees in each functional area.

Functional
Areas

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Introduction of company:............................................................................................................1
Definition of Functional areas:....................................................................................................1
Key functional areas:...................................................................................................................1
Description of different types of skills required by employees in different key functional areas:
.....................................................................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Functional areas of business can be described as a different function within an organization
that are controlled or performed by different parts of a firm. Reason for separating operations of
business into various functional areas is to gain expertise in business operations (Ferreira,
Pimenta and Wlazlak, 2019). This report is based on analysis of key functional areas of IOM
Electronics Ltd. It covers definition of functional areas and description of various key functional
areas. Marketing, human resource management, customer services, finance, research and
development as well as sales are key functional areas which are discussed in this report. Further,
skills required for each functional area are evaluated.
MAIN BODY
Introduction of company:
IOM Electronics Ltd. is a regional organization which is in two sites that are, Manchester
as well as Liverpool. Total number of people that are employed in an organization is 200.
Definition of Functional areas:
Several tasks and functions that are incorporated in an organization can be defined as
functional areas of a business (Maylor, Blackmon and Huemann, 2016). The main purpose
associated with functional areas is ensuring that all essential activities of business are carried out
effectively and efficiently. It serves a critical role achieving objectives or targets of IOM
Electronics Ltd.
Key functional areas:
Research and development, marketing, sales, human resource management, finance and
customer services are some key functional areas of a company. These key functional areas are
further described below in a detailed manner:
Marketing: It indicates activities which are performed in an organization for identifying
requirements of customers and designing products or services for meeting such requirements
(Komoltsev and et.al., 2020). Apart from it, marketing functional area of business involves
promotion of products or services which are offered by IOM Electronics Ltd. It incorporates
determination of approaches that are applied for delivering products or services, and
development of a pricing strategy for capturing market share in order to sustain in this highly
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competitive globalised era. In this business environment which is technological driven,
functional area of marketing is also accountable for building an internet presence of IOM
Electronics Ltd. In this functional area of IOM Electronics Ltd., market research is carried out
for obtaining feedback of customers regarding products or services which are offered by an
enterprise. Further, results of market research are analysed and its implications are determined.
Promotional approaches are utilised for marketing products and services of firm. Apart from it,
marketing function also involves designing, updating as well as promoting website of a
company.
Customer service function: Customer service functional area is generally responsible
for management of customer relationship. It provides resolution for problems faced by customers
as well as supports them (Semenets-Orlova and et.al., 2020). In context to IOM Electronics Ltd.,
functional area of customer service is responsible for answering queries of its customers. Apart
from it, specialist services as well as advice s provided to them for the purpose of meeting
customer requirements. Customer queries are dealt in accordance to company procedures.
Customer feedback are utilised for improving customer service and enhancing their satisfaction
level. In addition to it, customer service functions involve providing of after sales services to
customers that incudes replacement of damaged products and arrangement for repairs.
Finance: Functional area of finance includes activities of planning, obtaining as well as
managing funds of a company. Finance functional area of IOM Electronics Ltd. focuses on
planning for long term as well as short term requirements of financial capital in an organization.
Apart from it, impact of borrowings on financial well-being of an organization is analysed by
this functional area. Focus areas of finance department of an enterprise is on analysing ways of
raising funds in business and evaluating the costs associated with borrowing of funds.
Additionally, determination of implications of decisions which are taken regarding finance on
long term health and sustainability of IOM Electronics Ltd. Finance functions involves recording
of monetary transactions of an organization and monitoring of departmental budgets for the
purpose of regulating on overspending in business, as overspending leads to reduction in
profitability.
Human resource management: Functional area of human resource management is
responsible for recruiting and selecting new staff in an organization. It ensures fulfilment of
vacancy with best suitable individual for job position that pertains required skills and
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competencies. This functional area plays an essential role in IOM Electronics Ltd., as procedure
of recruitment is expensive as well as time consuming. Hence, hiring of a wrong person proves
to be a costly affair and leads to emergent of problems for a company. Other functions that
includes in human resource management are monitoring of working conditions in an
organization, management of staff members and incorporation of policies related to staff welfare.
Research and development: Functional area of research and development involves
activities which are undertaken by a company for innovation and introduction of new products or
services in business. Goal of research and development functional area of IOM Electronics Ltd.
is to launch new products or services in a market. It leads to enhancement of bottom line of a
firm. It provides competitive edge to an organization. Hence, it can be stated that integrated role
us payed by department of research and development in business. Its functions involve,
development of new products, upgradation of existing products, checking of quality control and
implementation of innovations for the purpose of staying ahead in market competition (Khalili,
Van Den Besselaar and De Graaf, 2018).
Sales: Sales is a crucial functional area of business. Sales functions includes organization
of sales promotion and preparation of quotas and estimates of company sales. In relevance to
IOM Electronics Ltd., department of sales is responsible for increment of sales of a firm with
ultimate focus on enhancing revenue generation capacity of business. Overall, it can be stated
that functional area of sales is focused on selling products or services of an organization to its
target customers which leads to increment in profitability of business.
Description of different types of skills required by employees in different key functional areas:
Different types of skills and expertise are required by persons to perform effectively in
different departments. These skills are explained below in accordance to different key functional
areas of business:
Employees of Marketing: Marketing functional area is centred towards identification
and achievement of customer needs. It focuses on communicating with target customers. Hence,
effective interpersonal and communication skill are required by employees of marketing
department of IOM Electronics Ltd. apart from it, influencing or negotiation skills plays an
important role in attracting target market. Further, team work is required to achieve goals of
marketing in business.
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Employees of Human resource management: Department of research and development
is concerned for management of work force of an organization. Employees of research and
development functional area of IOM Electronics Ltd. are required to pertain skills related to
human resource management, effective decision making, communication as well as organization
skills are required.
Employees of Customer service: Customer service department is focused on
management of customer relationships. Hence, problem solving skills is highly required by
employees of customer service for efficient handling customer queries and providing quick
resolutions to them (Crane and et.al., 2019). In addition to it, clear communication skills,
patience, adaptability, empathy and skill of persuasive speaking are required by customer service
employees of IOM Electronics Ltd.
Employees of Finance: A formal qualification of accounting, knowledge regarding
financial reporting, analytical ability, capability of decision making is required by employees of
finance department of IOM Electronics Ltd. Apart from it, data interpretation, financial planning,
financial analysis, risk analysis and strategic planning skills are also needed.
Employees of Research and Development: Research and development department is
focused on incorporation of effective innovation tactics in an organization for enhancement of
sustainability and profitability of business in long run. Therefore, research and development
employees of IOM Electronics Ltd. are needed to pertain efficient observational skills to
analysing requirements of customers. In addition to it, reasoning skills, analytical thinking skills
and verbal communication skills are required by employees of research and development for
effectively conduct research activities in business and present its implications.
CONCLUSION
From the above report it can be concluded that functional areas refer to grouping of
processes and activities of a firm in accordance to its requirement in accomplishment of tasks. In
other words, it can be stated that functional areas allow building efficiency as well as
effectiveness in business. Key functional areas of business involve, sales, marketing, research
and development, customer service, human resource management and finance. Different skills
are required by employees of different functional areas of an organization.
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REFERENCES
Books and Journals:
Crane, A., and et.al., 2019. Business ethics: Managing corporate citizenship and sustainability
in the age of globalization. Oxford University Press, USA.
Ferreira, A. C., Pimenta, M. L. and Wlazlak, P., 2019. Antecedents of cross-functional
integration level and their organizational impact. Journal of Business & Industrial
Marketing.
Khalili, A., Van Den Besselaar, P. and De Graaf, K. A., 2018, June. Using linked open geo
boundaries for adaptive delineation of functional urban areas. In European Semantic
Web Conference (pp. 327-341). Springer, Cham.
Komoltsev, I. G., and et.al.,2020. The Acute Period in Modeling of Traumatic Brain Injury in
Rats: Immediate Convulsions, Damage to Neocortical Functional Zones, and Behavioral
Impairments. Neuroscience and Behavioral Physiology. 50(7). pp. 841-844.
Maylor, H., Blackmon, K. and Huemann, M., 2016. Researching business and management.
Macmillan International Higher Education.
Semenets-Orlova, I., and et.al., 2020. Functional and role-playing positions in modern
management teams: an educational institution case study. Problems and Perspectives in
Management. 18(3). p. 129.
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