Functional Areas of Business: Key Areas and Required Skills

This report discusses the different functional areas of business, including marketing, HRM, sales, finance, customer service, and research & development. It also covers the skills required by employees to work effectively in these areas. The report uses Marks and Spencer as an example to illustrate the concepts.

3004
Functional Areas
1

Table of Contents
Table of Contents.............................................................................................................................2
1.0 Introduction............................................................................................................................3
2.0 What is a business?................................................................................................................3
3.0 What is Functional areas of business - Definition.................................................................3
4.0 What are the key functional areas of a business?..................................................................3
5.0 Description of the various functional areas in business organizations..................................4
6.0 Description of the types of skills needed by employees to be able to work effectively in
these functional areas...................................................................................................................6
Conclusion...................................................................................................................................7
REFERENCE..................................................................................................................................9
2

1.0 Introduction
Business is the form of running activities and task in the changing environment which
can help to develop the business productivity. There are different functions such as
marketing, HRM, sales, finance and production which can help to increase the business
performance effectively. To understand about this, Marks and Spencer has been selected
that is large size organization having number of functions and people to perform their roles
and responsibilities. The report covers functional areas and skills of employees which they
have to complete the roles (Chen and et.al., 2020).
(Wang and et.al., 2021)
2.0 What is a business?
A business is defined as enterprise and organization in which all activities are
engaged in the form of commercial, professional, and industrial activities. In a business
there are different types of functions that needs to perform properly as it influences the
number of people and getting the work done. The main purpose of businesses is to
maximise the profitability for stakeholders, and owners while maintaining corporate
social responsibility. To run a business successfully there is need to have different skills
and abilities which can be used to develop the business productivity by managing all
functions and completing the task properly.
3.0 What is Functional areas of business - Definition
The functional area of business is the main practice of organization which used
by management to separating their business operations in to functional areas and
allows people to build their working efficiency. In business organization there are many
functions such as marketing, sales, HRM, finance and others that need to perform
properly.
4.0 What are the key functional areas of a business?
This means sum and total of all activities that needs to perform in organization for
the purpose of achieving organizational goals and objectives. This is important for
organization to understand the business requirement and analysis the activities that
needs to perform carefully. The management of Marks and Spencer uses the different
3

functional areas and identify the abilities which can be used to develop the
organizational activities and performance in the changing environment (Field, 2021).
5.0 Description of the various functional areas in business organizations
5.1 Marketing: This is important function for each organization as it is used to
identifying the needs of people by analysing the marketplace and introduce the products
accordingly which can help to develop the organisational activities. To sale the products
marketing is used by management such as social media, digital media, public relations,
and others are the effective sources of communication that uses to reach the target
market and aware them regarding products and services. In Marks and Spencer,
marketing management use this function to influence the people and providing
information about products which are selling by organisation.
5.2 Human Resource Management:
To recruit and getting the work done from employees, HRM is considered as
main function which is performing by human resource management in each
organisation. This function is related to identifying vacancy and recruit the people who
are ready to work in organization. In relation to Mark and Spencer, HR management is
recruiting and selecting the right candidate after identifying the vacant position which
can help to develop the organizational performance. This can help to increase the
business activities and profitability (Hansen, 2021).
5.3 Customer Service:
This is another function which is related to providing the good customer service
which can help to develop the organizational activities. This is important for organization
to support their customers by providing feedback and dealing with changes properly.
Customers are those people who identify the needs and select the appropriate products
and services which can help to increase the business activities and maintain the higher
performance. In relation to Marks and Spencer, customer service manager is
performing the role of customer service by providing 24/7 hours services using chatbots,
feedback services and services which supports to develop the business productivity and
profitability.
5.4 Finance:
4

This function is related to understanding the demand of finance and filling it
properly by managing the funds and recording all transactions which are important in
the business organization. This is important for organization to have good knowledge
about finance and budget which can be prepared by management by analysing the
needs of business and providing them funds which can be used to develop the
organizational performance. In relation to Marks and Spencer, management use the
finance function by understanding demand and fill it properly which can help to develop
the organizational performance. The management should be found out the needs of
their business in the form of finance and make efforts to solve them properly.
5.5 Research and Development:
This function is related enabling competitive individual and team research that
can helps to know what is running in business environment and how to solve their
problems which can help to provide the products and services. The research
management is responsible to identify the needs of customers and provide them various
benefits which can be used to develop the business performance. In relation to Marks
and Spencer, research and development function is being used to conduct market
analysis and introduce the products. This can help to bring he changes and new
products and services which increases the business activities that develop the business
performance (Kinoshita and Nakada, 2021).
5.6 Sales:
This function is related to building of royalty and trust between customer and
business which can help to improve the brand image and profitability. The aim of each
organisation is to increase the sales and profitability by using the different types of
strategies and planning which can be used to influence the number of people and
providing them products and services. In relation to Marks and Spencer, sales
management is having important role who provide the right details about product and
services which influence the number of customers and make decision to buy the
products. The selling activities of selected organization increasing day by day as it
focuses on changing trend and introduces the products and services properly.
5

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:
The marketing employees are those people who states how communicating
teams increase workforce engagement in alignment with everyone in the organization.
Marketing is the important function which is used by marketing management for the
purpose of increasing the organizational performance. The marketing management is
requiring to have different skills and abilities that are explained:
Communication skills: This skill is requiring communication where two and
more than two people can communicate easily and develop the business activities.
Interpersonal skills: This skill is related to facilitating interaction and
communication with others by following the social rules and regulations that can help to
develop organisational productivity (Li and et.al., 2021).
6.2 Skills needed by Human Resource Management employees:
Human resource management function is important for business organisation as
it recruits the skilled and talented people by using their abilities. The skills require for
this function are:
Recruitment skills: This skills is needed to have in human resource
management as they identify the vacancy and used the interview round to recruit the
skilled people which can help to develop the business productivity.
Directing and organizing skills – This means the function and activities of an
organisation is managing by human resource management as they have ability to
perform well (Shao and et.al., 2021).
6.3 Skills needed by Customer Service employees:
The customers are important aspects for any business as it identify the needs
and problems then provide optimum solution. The customer service employees require
such skills:
Collaboration and communication skills: To perform the role of customer
services there is need to have collaboration and communication skills which can be
used to provide right suggestion to their customers.
6

Ability to use positive language: This skill is needed to have in customer
service employees as they can use the positive language which can be understand
easily and develop the organizational performance in the changing environment
6.4 Skills needed by Finance employees:
Finance management skills – This skills is needed for finance management as
it is used to understanding the business demand and preparing the income statement
by considering all income and expenses.
Fund raising skills: If there is shortage of fund then finance management
should have ability to raise the fund and develop the organizational performance. This
also bring the change in their working and preparing the financial statement.
6.5 Skills needed by Research and Development employees:
Research and development skills – The research management is requiring to
have research and development skills which can be used to know what is running in
market and how their customers can be satisfied.
Analytical thinking skills – This skill is needed to have in research
management where it can think critically and bring the new technologies which can be
used to develop the business productivity and profitability (Wang and et.al., 2021).
6.6 Skills needed by Sales employees:
Motivation skills – In business environment, number of employees are working
who needs motivation so that they can work effectively and getting the work done from
employees. The sales management of Marks and Spencer is having such skills which
can be used to filling customer demand and increase the organizational activities.
Decision making skills – The sales management who are working in
organization should have decision making skill which can be used to provide the
products and services to their customers and develop the organizational performance
and productivity at the workplace.
Conclusion
From the report it can be concluded that organizational functions are those which
are operating by different people for the purpose of running their business and increase
the productivity. The functions are HRM, marketing, sales, finance, IT, customer
services and research & development which are used to analysing the needs of their
7

customers and provide them products accordingly. The management is having good
role and responsibilities which is performing in a good way and manage the higher
productivity.
8

REFERENCE
Books and Journal
Chen, C. and et.al., 2020. Classification of urban functional areas from remote sensing images
and time-series user behavior data. IEEE Journal of Selected Topics in Applied Earth
Observations and Remote Sensing. 14. pp.1207-1221.
Field, T. L., 2021. A Just Energy Transition and Functional Federalism: The Case of South
Africa. Transnational Environmental Law. 10(2). pp.237-261.
Hansen, A., 2021. The purposes of performance management systems and processes: a cross-
functional typology. International Journal of Operations & Production Management.
Kinoshita, M. and Nakada, M., 2021. Brain Functional Networks and Awake Craniotomy for
Gliomas. No Shinkei geka. Neurological Surgery. 49(3). pp.556-567.
Li, H. H. and et.al., 2021. Polycyclic aromatic hydrocarbons in street dust from different
functional areas in Chengdu, China: seasonal variation and health risk assessment.
Environmental Geochemistry and Health. pp.1-13.
Shao, Y. and et.al., 2021. Functional connectivity density alterations in middle‐age retinal
detachment patients. Brain and behavior. 11(4). p.e01783.
Wang, J. and et.al., 2021. Pollution characteristics, sources and health risk of metals in urban
dust from different functional areas in Nanjing, China. Environmental Research,
p.111607.
9