Introduction to Business Functions: Concepts and Strategies

This report provides a comprehensive introduction to business functions, exploring core and support functions essential for organizational success. It delves into the concepts of economy and diseconomy of scale, outlining their impact on production costs. The report examines critical factors influencing business location decisions, including market access, raw materials, transportation, and government regulations. It further analyzes effective and efficient production processes, emphasizing the importance of achieving targets while optimizing resource utilization. Additionally, the report discusses effective motivation strategies and workplace planning, covering various motivation theories and contemporary approaches to enhance employee performance and retention. The report aims to provide a solid understanding of key business functions and strategies for fostering growth and achieving market success.

Running Head: INTRODUCTION TO BUSINESS FUNCTIONS
Introduction to Business Functions
Name of the Student:
Name of the University:
Author Note:

1INTRODUCTION TO BUSINESS FUNCTIONS
Executive Summary
The report focuses on the introduction of the business function in an organization. The study
provides a clear idea regarding the concept of economy and diseconomy of scale along with
that focuses on the factors influence in the selection of the location. The report also focuses
on the efficient and effective production process along with the different motivation theories
as well as contemporary theory. These enable the growth of the company so that the company
can earn more from the market and employees can develop their careers in the company.

2INTRODUCTION TO BUSINESS FUNCTIONS
Table of Contents
Introduction................................................................................................................................3
Concept of Economy and Diseconomy of Scales......................................................................3
Factors Influence the Selection of Location...............................................................................4
Effective and Efficiency of the Production Process...................................................................5
Effective Motivation and Workplace Planning..........................................................................6
Motivation Theory.....................................................................................................................6
Contemporary Approach to Motivation.....................................................................................7
References..................................................................................................................................8

3INTRODUCTION TO BUSINESS FUNCTIONS
Introduction
A business function is the activities that are being used by the company so that they
can flourish in the market and can become popular in the market. There are mainly two types
of functions that are there in the business function and they are core business functions as
well as the support business functions. These are the two things that are being done in the
business function which helps the company to become successful in the process.
Concept of Economy and Diseconomy of Scales
In economics, as we talk about the scale of production, it can be usually heard that
large-scale production enables the company to reduce the cost of production. These often
assist the company to produce a large batch of product at less cost. As per the concept the
economies of scale are considered to be the reduction in the cost of the production due to the
increase in the production of the output in an organization (Drew, Kortt and Dollery 2014).
These enrich the company to flourish in the market and enable them to achieve the target
what they intend to achieve in the process.
On the contrary, diseconomies refer to the concept which enables us to understand
that when the production of the output increase to a great extent then the cost of the
production started increasing in the process. The company needs to look after the production
of the products to a large extent but in a limited way possible so that they do not face
diseconomies in the process (Bailey 2017). These need to be understood by the company so
that they can flourish in the market and can earn profit in it.

4INTRODUCTION TO BUSINESS FUNCTIONS
Fig. 1: Economies of Scale
(Source: Created by Author)
Fig. 2: Diseconomies of Scale
(Source: Created by Author)
Factors Influence the Selection of Location
The location of the business is essential for the company to grow in the market and to
become successful in the process. The company needs to keep in the mind the major four
factors while setting up a business, which is crucial for the growth of the company in the

5INTRODUCTION TO BUSINESS FUNCTIONS
market and to achieve the target that they intend to achieve in the process. They are mainly
market; raw material along with that transportation cost and government (Coeurderoy and
Murray 2014). In the transportation cost, there are four parameters that need to consider and
they are land; labor; safety and waste disposal. The company will be able to achieve success
if they are able to look into the matter and consider the factors which are responsible for the
selection of the location to set up the business (Saracoglu 2017). Therefore, it enables the
company to achieve the target and to become successful in the process so that they can earn a
huge amount of profit from the market.
Effective and Efficiency of the Production Process
Effectiveness in the production process enables the company to achieve the objective
that the company wants to achieve from the market. Effectiveness enables the company to
know how well they achieved the target of what the company desired in the process. This
effectiveness assists the company to understand whether they will be able to meet the target
or not (Bartuševičienė and Šakalytė 2013). The desired target that the company sets is the
needs and wants of the customers which need to be fulfilled in order to achieve the target that
the company is willing to achieve in the market.
On the other hand, efficiency enables the company to know how less amount of
resources the company utilizes to achieve the target in a timely manner. These enable them to
know how efficiently the company along with the employees are working so that they can
achieve the target in the market. Therefore, it is important for the company to look after both
the parameters so that they can grow in the market and achieve success in the process
(Huang, Ho and Chiu 2014).

6INTRODUCTION TO BUSINESS FUNCTIONS
Effective Motivation and Workplace Planning
Effective motivation enables the company to take care of the employees and assist
them to grow in the company so that they can succeed in their life. The employees need
constant motivation so that they can perform well in the organization which will
automatically help the company to become successful in the market. It is essential for the
organization to motivate the employee in every stage of their career so that they can provide
their best to the company, which is beneficial for the employees as well as for the company in
the growth process (Noe, Hollenbeck, Gerhart and Wright 2017).
On the other hand, workplace planning is also crucial for the company to reduce the
turnover of the employees from the company. The company should hire high-skilled
employees along with that research the trend and the company should look beyond the
industry and should utilize quality software. These will automatically enable the employee to
enjoy the work and they will feel motivated. These will assist the company to perform well in
the market as the employees are working hard in the company due to the effective workplace
planning (Allui and Sahni 2016).
Motivation Theory
The different motivational theories enable the individual as well as the company to
know the process to motivate the employees who are working in the company. These enable
the company to grow in the market as well as enable them to flourish in the market. The
motivational theory assists the company to enrich the employees to succeed in their career
(Zhao and Zhu 2014). These are crucial steps that have been taken by the managers of the
company so that they can enhance the financial position of the company in the market. There
are different motivational theories that can be used in the process as per the requirement of
the company to motivate the employee to work hard in the company (Mega, Ronconi and De

7INTRODUCTION TO BUSINESS FUNCTIONS
Beni 2014). Therefore, it is important for the company to look after the motivational theory
and should select the appropriate motivational theory so that they can succeed in the process
and also enable the employees to grow in the market.
Contemporary Approach to Motivation
The contemporary approach is also helpful for the company to motivate the
employees in the organization. This approach is as necessary as the direct approach to
motivate the employees. These theories assist the employees to achieve the target without
knowing that they are constantly being motivated by the company. Therefore, this theory is
also considered to be essential to motivating the employees in the market (Petty 2018). The
company needs to look after the contemporary theories along with the motivational theory as
these will provide a better idea to the managers as well as the company regarding what
motivational theories need to be chosen by the company. This theory enables the company to
link between the effort and the performance, so it is crucial for the company to look after the
contemporary theory. Hence, it can be said that the company needs to implement both the
motivational as well as the contemporary approach to motivate the employee within the
organization so that the employee can grow in their career along with the company in the
market (Cetin 2015).

8INTRODUCTION TO BUSINESS FUNCTIONS
References
Allui, A. and Sahni, J., 2016. Strategic human resource management in higher education
institutions: empirical evidence from Saudi. Procedia-Social and Behavioral Sciences, 235,
pp.361-371.
Bailey, R.M., 2017. Economies of scale in outpatient medical practice. The Administration of
Health Systems: Comparative Perspectives, p.348.
Bartuševičienė, I. and Šakalytė, E., 2013. Organizational assessment: effectiveness vs.
efficiency. Social Transformations in Contemporary Society, 1(1), pp.45-53.
Cetin, B., 2015. Predicting Academic Success from Academic Motivation and Learning
Approaches in Classroom Teaching Students. Contemporary Issues In Education
Research, 8(3), pp.171-180.
Coeurderoy, R. and Murray, G., 2014. Regulatory environments and the location decision:
Evidence from the early foreign market entries of new-technology-based firms. In Location
of International Business Activities (pp. 226-260). Palgrave Macmillan, London.
de Groot, R.J., Baker, S.C., Baric, R.S., Brown, C.S., Drosten, C., Enjuanes, L., Fouchier,
R.A., Galiano, M., Gorbalenya, A.E., Memish, Z.A. and Perlman, S., 2013. Commentary:
Middle East respiratory syndrome coronavirus (MERS-CoV): announcement of the
Coronavirus Study Group. Journal of virology, 87(14), pp.7790-7792.
Drew, J., Kortt, M.A. and Dollery, B., 2014. Economies of scale and local government
expenditure: evidence from Australia. Administration & Society, 46(6), pp.632-653.
Huang, C.W., Ho, F.N. and Chiu, Y.H., 2014. Measurement of tourist hotels׳ productive
efficiency, occupancy, and catering service effectiveness using a modified two-stage DEA
model in Taiwan. Omega, 48, pp.49-59.

9INTRODUCTION TO BUSINESS FUNCTIONS
Mega, C., Ronconi, L. and De Beni, R., 2014. What makes a good student? How emotions,
self-regulated learning, and motivation contribute to academic achievement. Journal of
educational psychology, 106(1), p.121.
Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M., 2017. Human resource
management: Gaining a competitive advantage. New York, NY: McGraw-Hill Education.
Petty, R.E., 2018. Attitudes and persuasion: Classic and contemporary approaches.
Routledge.
Redpath, N., O'Connell, J.F. and Warnock-Smith, D., 2017. The strategic impact of airline
group diversification: The cases of Emirates and Lufthansa. Journal of Air Transport
Management, 64, pp.121-138.
Saracoglu, B.O., 2017. Location selection factors of small hydropower plant investments
powered by SAW, grey WPM and fuzzy DEMATEL based on human natural language
perception. International Journal of Renewable Energy Technology, 8(1), pp.1-23.
Zhao, Y. and Zhu, Q., 2014. Evaluation on crowdsourcing research: Current status and future
direction. Information Systems Frontiers, 16(3), pp.417-434.