Functional Areas of Business: Importance and Required Skills

This report covers various business functional areas and their importance in conducting business activities. It involves the skills required by employee's in order to perform business functions effectively. The report also describes the various functional areas in business organizations such as marketing, human resource management, customer service, finance, sales and research and development.

Business Management with Foundation
BMP3004
World of Work
Functional Areas
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Contents
1.0 Introduction p
2.0 What is a business? p
3.0 What is Functional areas of business – Definition
p
4.0 What are the key functional areas of a business?
P
5.0 Description of the various functional areas in business
organizations p-p
5.1 Marketing p
5.2 Human Resource Management p
5.3 Customer Service p
5.4 Finance p
5.5 Research and Development p
5.6 Sales p
6.0 Description of the types of skills needed by employees
to be able to work effectively in these functional areas
p-p
6.1 Skills needed by Marketing employees p
6.2 Skills needed by Human Resource Management employees
p
6.3 Skills needed by Customer Service employees
p
6.4 Skills needed by Finance employees p
6.5 Skills needed by Research and Development employees
p
6.6 Skills needed by Sales employees p
7.0 Conclusion p
References p
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1.0 Introduction
Business function consist of activities that are specific to certain operations. These
operations are carried out by various departments within a business and assist in
accomplishing business objectives. These functions are crucial as the entire structure of an
organization depends upon its the performance of various business functions. Moreover, it
ensure all business operations perform at an optimum level and have a positive impact on its
customer, employees and stakeholders. This report will cover various business functional
areas and their importance in conducting business activities. Moreover, it involves the skills
required by employee's in order to perform business functions effectively.
2.0 What is a business?
Business is an economic activity which is concerned with production,distribution and
exchange of products and services in order to earn profits by satisfying the needs of
customers. (Baines, Rosengren and Antonetti ., 2021). Its primary purpose is to maximize
profits for owners or stakeholders while maintaining corporate social responsibility.
3.0 What is Functional areas of business - Definition
Functional areas of business refer to various activities that are performed within an
organisation. These activities are divided into respective functions or departments and serve
an important role in business functioning (Bakalinsky and et. al., 2020). These functional
areas are interrelated and interdependent on each other and can be divined into 2 parts which
are elaborated below:
Core business functions:
These are activities which focus on generating income in a business and includes
production of final goods or services intended for the market. It includes activities such as
marketing, sales, etc.
Support business functions:
These activities are performed by a business in order to support the core activity
functions and improve overall business operations. It includes activities such as distribution,
logistics, warehousing and order processing.
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4.0 What are the key functional areas of a business?
There are various functions within a business such as marketing, human resource
management, customer service, finance, sales and research and development which help in
performing and controlling a business (Charter ed., 2018). It is essential for each department
to have synergy and develop good communication, cooperation and close relationship with
each function. These business functions work in their area of expertise which results in
improved efficiency and effectiveness of the business.
5.0 Description of the various functional areas in business
organizations
5.1 Marketing:
This function of a business is concerned with identifying customers needs and
developing products and services which can then satisfy the those needs . Its primary activity
is to promote products and services of the business and intentionally create demand for them
in the market (Hoerl and Snee , 2020).
5.2 Human Resource Management:
This function focuses on strategic approach to employ, develop and well being of the
individuals working in an organsiation. It consists of activities such as recruitment, hiring,
performance management, employee motivation and safety. It aims to improve employee’s
productivity and ensure business is protected from any hindrances caused by issues by the
workforce. Its primary activity is to hire capable individual who are efficient in their work
and would help in achieving business objectives.
5.3 Customer Service:
The purpose of this function is to ensure that all queries of customers regarding the
products and services of a business are fulfilled. It provides high experience to customers
which helps in retaining them and encourage growth in business. It aims to provide quality
services to customers by solving any grievance and provide assistance during their purchase.
This helps in creating brand loyalty and retaining customers for a business.
5.4 Finance:
This function involves managing and obtaining funds for the business with an
effective planning. It consist of activities such managing balance sheets, financial statements,
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day-to-day records, including payroll, account payable and receivable. It considers both
short-term and long-term financial needs of a business and its primary activity is to raise
funds and its efficient utilization.
5.5 Research and Development:
This functional area is crucial for a business as it provides ideas for innovation and
knowledge which assist in business gaining competitive advantage in the market. This
functional area helps a business in launching new products or improve existing ones in order
to improve efficiency (Koh, Singer and Edmondson ., 2019) Its primary function is to utilize
funds from financial department and develop new and efficient techniques to produce goods
and services.
5.6 Sales:
The objective of this function is to generate needed profitability for the business in
order to keep it operational. These functions can vary in structure and approach according to
the size of the business. Its primary function is to follow leads generated by marketing
department and convert them into revenue for the business.
6.0 Description of the types of skills needed by employees
to be able to work effectively in these functional areas
6.1 Skills needed by Marketing employees:
Creativity:
The employee's need to be creative while developing marketing strategies for
products and service of a business in order to inform and attract potential customer
efficiently.
Problem solving:
It is crucial of individuals to have good problem solving skills in order to negate
challenges presented by pricing of products and services of the business (Qureshi and et. al.,
2020). This skill helps employee's be efficient in performing their tasks.
Adaptability:
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It is important for employee's to be adaptable in order to keep up with dynamic
market trends and customers needs. This ensures employee's are well informed about their
surroundings which results in improved efficiency.
6.2 Skills needed by Human Resource Management employees:
Communication:
The employee's need to have impressive communication skills in order to effectively
communicate task and objectives to their co-workers. This ensures efficiency is maintained
and task are completed on time.
Leadership:
It is important for employees in this functional area to have good leadership skills in
order to effectively guide and direct their co-workers towards business objective. Moreover,
it helps them in building positive relations with their co-workers which improves business
performance.
Problem solving:
It is vital for these employee's to have good problem solving skills in order to resolve
conflicts between the workforce and the management. It ensures they handle any hindrances
posed by the workforce in an effective and efficient manner.
6.3 Skills needed by Customer Service employees:
Active listening:
It is necessary for these employee's to have good listening skills to precise what the
customer wants in order to efficiently provide solutions to their queries. This ensures
minimum time is wasted while solving customer queries.
Communication:
These individuals need to have impressive communicate while conversing with
customers in order to deliver solutions to customers queries in an effective manner (Russell
and Taylor ., 2019). This makes sure that customers understand the solutions being conveyed
to them.
Emotional intelligence:
It is crucial for employee's to understand emotions of the customers while solving
their queries or grievances in order to deliver appropriate solutions. In addition to this, it
helps in building good relations between customers and the business.
6.4 Skills needed by Finance employees:
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Qualified:
These individual need to be well educated and qualified in the field of finance in order
to take effective financial decisions for the business. This skill ensures they are efficient in
their field of work.
Analytical skills:
It is important for these employee's to possess valuable analytical skills in order to
enable them in interpreting financial data and analyze its relation to the overall business. This
helps in ensuring no mistakes are made during financial planning.
Technological:
These employee's need to have sound understanding of modern technology in order to
deal with influx of data in an effective and efficient manner (Syam and Kaul ., 2021). This
skill enables them to better utilize financial resources
6.5 Skills needed by Research and Development employees:
Time management:
These individuals should have good time management skills in order to deliver
complex business projects on time. This ensures that their performance standards remain high
and that they are efficient in their work.
Teamwork:
It is vital for these individuals to have positive teamwork skills in order to solve
complex situations regarding development of products and services as a team (Tone ., 2018).
This not only promotes efficient working within the workforce but also minimizes time
wasted on completing tasks.
Critical problem:
These employee's need to have critical problem solving skills which enable them to
identify opportunities for innovative products and services that can benefit the business.
Moreover, it provides them the ability to overcome complex task and complete them with
great efficiency.
6.6 Skills needed by Sales employees:
Rapport-building:
It is important for these employee's to build rapport with customers in order to
increase their chances of selling business products and services. This helps in developing
better relations with customers and increase profitability of the business.
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Product knowledge:
These individuals need to be well sound of all the products and services provided by
the business in order to present accurate product details to potential customers. This makes
them efficient in increasing their sales and increase business profitability.
Communicate:
These employee's need to have impressive communicate skills to attract customers
into purchasing business products and services. Moreover, this skill enables them to be
efficient in increase customer base of the business and improve its profitability.
Conclusion
It is concluded from the above report that business functions are crucial in order to
run a business efficiently. These functions combined help in keeping the business profitable
and ensure elimination of any hindrances that may impact the overall business. These
business functions help a business to ensure all its operations are performed at optimum
levels with great efficiency in time management. In additional to this, it assists in
understanding each function within a business and how it helps in improving effectiveness
while performing task in the respective function and how a week department of a business
can be improved upon. Moreover, it provides in-depth knowledge on skills required by
employee's in order to perform task in specific functions of business and how they can
improve their effectiveness by utilizing their certain skills and help the business in achieving
it goals and objectives in an effective manner.
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References
Baines, P., Fill, C., Rosengren, S. and Antonetti, P., 2021. Marketing and Innovation.
Bakalinsky and et. al., 2020, November. Analysis of Trajectory of Client’s Attitude
Formation in Managerial Decisions for Improving the Customer Service Value.
In International Conference on Business and Technology (pp. 1947-1957). Springer,
Cham.
Charter, M. ed., 2018. Designing for the circular economy. Routledge.
Hoerl, R. W. and Snee, R. D., 2020. Statistical thinking: Improving business performance.
John Wiley & Sons.
Koh, H. K., Singer, S. J. and Edmondson, A. C., 2019. Health as a way of doing
business. Jama, 321(1). pp.33-34.
Qureshi and et. al., 2020. Human Resource Management from a Justice-Based
Perspective. Business and Management Research, 9(4). pp.1-9.
Russell, R. S. and Taylor, B. W., 2019. Operations and supply chain management. John
Wiley & Sons.
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Syam, N. and Kaul, R., 2021. Neural Networks in Marketing and Sales. In Machine Learning
and Artificial Intelligence in Marketing and Sales. Emerald Publishing Limited.
Tone, A., 2018. The business of benevolence: Industrial paternalism in progressive America.
Cornell University Press.
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