Functional Areas of Business

BSc (Hons) Business Management with
Foundation
BMP3004
World of Work
Functional Areas
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1.0 Introduction
Business functions are referred as the activities which are performed by a
business. These functions can be categorized into support functions and core
functions. The support functions of the business are the ancillary activities performed
by organisation to permit or facilitate core functions of business, its production
activity (Henkens and van Solinge, 2021). The core functions are the activities that
yield income for business. This report is based on the case study of John who is 21
years old and has just won 10 million pounds on lottery. He has very little experience
and has no understanding of various practical requirements of business. So, he hired
consultant to advise him about different functional areas in the business organisation
and the types of skills required by employees to work effectively. This report aims to
discuss the main functions of Business and the skill sets needed for working in
these.
2.0 What is a business?
Business is referred as the activity of making money through developing or
purchasing and selling of goods. It is the organisation or business entity which is
engaged in industrial, professional or commercial activities. It can be nonprofit or for
profit organisation which operates to fulfill a particular mission or a social cause
(Sobel, 2021).
3.0 What is Functional areas of business - Definition
Functional areas of business are referred as the different departments of
business that performs a specific function. These are also known as business units.
These involves teams of employees who possess similar expertise and skills.
4.0 What are the key functional areas of a business?
The main functional areas of the business include marketing, finance,
customer service, human resource management, sales and research and
development. Apart from these functional areas of business, some other functional
areas include production, administration, distribution and information and
communication technology. The key purpose of these functional areas to make sure
that all the important activities of business are performed efficiently.
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5.0 Description of the various functional areas in business
organizations
5.1 Marketing:
Marketing function is all about determining as well as mitigating the needs of
customers. This function assist company to determine and source potentially
successful goods for the market place in which it operate and promote those goods
through differentiating them from same products. This function includes performing
market research, product development, developing marketing plan, market
penetration and market development along with strategically taking care of
distribution for sales, advertising, pricing, public relations and after sales customer
service (Story, 2021).
5.2 Human Resource Management:
Human resource management is one of the main function of business which
ensures that best talent retain within the organisation. The main responsibility of this
department includes human resource planning, recruiting and selecting employees,
induction and orientation, performance management, training and development,
function evaluation, rewards and recognition, career planning and maintain industrial
relations. The human resource manager motivates employees to stay within the
organisation for long term. They developed effective training and development
sessions for the employees in order to develop their skills and competencies and
make them able to perform their roles and responsibilities in effective way.
5.3 Customer Service:
Customer service is defined as the support that a business provides to its
customers - before and after they purchase and utilize its goods and services. This
assists dam to have an enjoyable and easy experience with organisation. For any
business, it is very important to provide high quality customer services so as to retain
them for longer in the organisation and leads the business towards growth (Shabir,
Khan and Gani, 2021). Today, the expectations of customers are very higher and
when they contact an organisation, they expect polite, prompt and knowledgeable
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