Functional Areas of Business Management

This report analyzes the functional areas and management hierarchy of Chic by Choice, a medium-sized online fashion retailer. It outlines the specific functions of various departments such as IT, purchasing, renting, marketing, and finance, and describes the hierarchical structure of management, including top, middle, and first-line management. The report concludes that the division of responsibilities and authorities enhances the company's efficiency and profitability.

Functional Areas of Business and Its
Hierarchy of Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
REFERENCES................................................................................................................................4

INTRODUCTION
Functional areas in the business comprise team who have specific skills as per
departmental function or area of work. The study will outline functional areas and hierarchy of
management of Chic By choice which is a medium sized online fashion retailer. It helps its
customers in renting the clothes of catwalks. It has employed approximately 146 employees
within the organisation.
MAIN BODY
Function areas of Chic by Choice
 Information technology: The company regulates its operation on online platform (Burns
and Dewhurst, 2016). This functional unit is responsible for implying to the latest
technological features to grab maximum customers and fashion designers as well. The
department is also responsible for ensuring easy and user-friendly access to official
website of firm.
 Purchasing: This functional area of Chic by Choice, regulates a check over purchase of
clothing from various designers to make them available for its customers for renting
purpose (Paredes, 2018).
 Renting: Employees of this area makes the cloths available to their customers for renting
purpose for specific time period according to shopper expectations of shopper.
 Marketing: Employees of this area helps company in advertising itself as to attract
maximum population towards the company's sites (Yeoh and Popovič, 2016).
 Finance: Its employees performs their function to record all the expenses and incomes
and determines profit generated by it.
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Hierarchy of management
Hierarchy of management shows the various levels of management based on their
authorities in company. It refers to division of authorities and responsibilities among various
managerial persons to enhance the effectiveness of management and functional areas of
company. Chic by chance's hierarchy of management is as under:
 Top management: The management level is ultimate decision-making authority of Chic
by choice which comprise chief executive officer who is an owner of business. Further, it
includes vice chairman, vice-president who are responsible for reviewing all business
changes done by no executives (Ivanov, 2015). Decision taken by them need to be in
accordance with the needs of employees and for better growth of the overall
organizations as well.
 Middle management: General and Regional managers are part of this level of
management. Further, the department comprise office managers, core designers who
regulates control over employees’ activities and functional areas of Chick by choice.
They have key responsibility to implement all strategy of top management within
organization and being mediators of first line and top management. They transfer
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Illustration 1: Hierarchy of management
(Source: Company Management Hierarchy Structure |
Hierarchy Structure, 2019)

information of fist line management to top management for decision making purpose and
also transfers the decision taken by them to first line management.
 First line management: This comprise team leads, designers who keeping changes and
employees working in functional area of firm. The level is focused on workforce and
quality of work for managing successful growth of business (Amiga, 2017). Further they
also have responsibility to transfer all needs and demands of workforce to middle
management.
CONCLUSION
From the above study it has been analysed that Chic by Choice is a middle-sized
company of fashion industry. It has different functional areas that perform their own functions.
Company has divided managerial authorities in different hierarchy. All managers perform their
tasks as per their authority and responsibility in the company. This hierarchy of management has
helped the company in enhancing its efficiency in managing all the affairs of company and
prevent it better growth and enhance its profitability and market share as well.
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REFERENCES
Books and Journals
Amiga, O. and et.al., 2017. Application management within deployable object hierarchy. U.S.
Patent 9,753,712.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Ivanov, S., 2015. Exposing myths of modern management: Innovation–identifying the
problem. Journal of Leadership and Management. 1(3).
Paredes, K. M. B. and et.al., 2018, June. Retail innovation: perceptions, management, and
challenges of a systematic approach. In ISPIM Innovation Symposium (pp. 1-15). The
International Society for Professional Innovation Management (ISPIM).
Yeoh, W. and Popovič, A., 2016. Extending the understanding of critical success factors for
implementing business intelligence systems. Journal of the Association for Information
Science and Technology. 67(1). pp.134-147.
Online
Company Management Hierarchy Structure | Hierarchy Structure. 2019. [ONLINE] Available
through <https://www.hierarchystructure.com/company-management-hierarchy/:>
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