Functional Areas of Business: Importance and Skills Required

Functional Areas
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Table of Contents
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 ..........................5
6.0 Description of the types of skills needed by employees to be able to work effectively
in these functional areas ......................................................................................................6
CONCLUSION..............................................................................................................................8
REFERENCES...............................................................................................................................9
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1.0 INTRODUCTION
The given below report will provide information about the business and its workings.
It will describe about the key functional areas and its importance in order to run a business
efficiently and effectively. The given report will also describe about the different skills that
are required in an employee for different functional areas in IOM electronics ltd.
2.0 What is a business?
It is a set of activities done by an individual or group of individuals in order to earns
profits by producing or manufacturing goods and services. It is an entity engaged in
industrial, professional, charitable or commercial activities.(Castells‐Quintana and et.
al., 2020.) Business is considered to be a separate entity and can be for profit or not
for profits. In context to IOM electronics ltd., they will engage in the activity related to
electronic items. As it is a public limited company the workings of the business will
not only be dependent upon the owner but also on directors. All the major decisions
will be taken only after the meetings between board of directors.
3.0 What is Functional areas of business - Definition
Different functional areas within a business performs different functions essential for
effective and efficient management of an organization. Separate business functional
areas helps the business in getting expertise in all fields separately. The separate
functional areas helps the business to delegate the workings in between employees
of separate departments(Dano, E.B., 2019, October.). By delegating authorities and
responsibilities the business can use the expertise of each and every department
and also avoid the situation of confusion as well as conflicts. In respect to IOM
electronics ltd. The company needs to manage all these functional areas effectively
and efficiently in order to maintain smooth functioning of the business activities.
4.0 What are the key functional areas of a business?
The key functional areas of business are:
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