Functional Areas of Business: Skills, Descriptions, and Analysis

This report provides an in-depth overview of the functional areas within a business, emphasizing their importance and interrelation. It defines and describes key areas such as marketing, human resource management, customer service, finance, research and development, and sales. The report further details the essential skills required for employees to work effectively within each functional area, including interpersonal, communication, and analytical abilities. It also references relevant academic sources to support its claims. The document aims to assist in understanding the core components of business operations and the skills needed for success in each area, offering insights valuable for both business students and professionals. The report concludes by summarizing the importance of each functional area and the impact of skilled employees on the success of a business.

Functional areas

Table of Contents
1.0 Introduction............................................................................................................................1
2.0 What is a business..................................................................................................................1
3.0 What is Functional areas of business.....................................................................................1
4.0 Key functional areas of a business.........................................................................................1
5.0 Description of the various functional areas in business organizations..................................1
5.1 Marketing...............................................................................................................................1
5.2 Human Resource Management..............................................................................................1
5.3 Customer Service...................................................................................................................2
5.4 Finance...................................................................................................................................2
5.5 Research and Development...................................................................................................2
5.6 Sales.......................................................................................................................................2
6.0 Description of the types of skills needed by employees to be able to work effectively in
these functional areas...................................................................................................................3
6.1 Skills needed by Marketing employees.................................................................................3
6.2 Skills needed by Human Resource Management employees................................................3
6.3 Skills needed by Customer Service employees.....................................................................3
6.4 Skills needed by Finance employees.....................................................................................3
6.5 Skills needed by Research and Development employees......................................................4
6.6 Skills needed by Sales employees.........................................................................................4
7.0 Conclusion.............................................................................................................................4
REFERENCES................................................................................................................................5

1.0 Introduction
Present report will lay emphasis on different functional areas which a business comprises
of. It will provide information about core aspects which is needed by John to run the business
effectively. Study will make sure to lay emphasis on various skills which are needed to make
business successful. There will be use of different models so that better assistance can be
provided to John for understanding business.
2.0 What is a business
Business can be defined as an entity who is involved in doing commercial activities such as
buying and selling goods for making profit.
3.0 What is Functional areas of business
Business functions are activities which is been carried out by an entity so that better profit
can be earned. In this hierarchical list related to responsibility is made so that the units can be
organised.
4.0 Key functional areas of a business
There are basically various functional areas of business. It includes Marketing, human
resource, customer service, finance, research and development, sales. These are most essential
functions of company which can assist in making better decision in future. Facco et.al., (2017)
has stated that different areas of business works as cohesive unit rather than making use of
separate ways. When all functional areas work together better productivity and operational
efficiency is being achieved.
5.0 Description of the various functional areas in business organizations
5.1 Marketing
As stated by Nalawade, More & Bhola, (2019) marketing can be considered as the process
of promoting goods and services so that consumer’s needs can be met and also value is being
created by achieving adequate amount of profit. Marketing helps in increasing sales of products
through market research, promotion and placement. It is one of the most important functional
area as in today’s time competition is not just local but global too. It is necessary for every
organization to make sure that their marketing team is skilled and efficient.
5.2 Human Resource Management
HRM is the process of managing people so that goals and objectives of company can be
achieved and also it assists business in performing better. There are various functions of HRM
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such as planning, controlling, recruitment and selection. This department makes organizational
culture better so that they can be able to retain workers. Chen et.al., (2017) has stated that people
of the organization are most valuable assets than the fixed assets. The human resource
management also assists in improvising skills and abilities of workers by providing them with
adequate training and support. They make company policies according to laws, rules and
regulations which is been pertaining and developed by government. It is really necessary to do
such things and aspects.
5.3 Customer Service
Customer service is process of giving adequate support to potential and existing
consumers. This department has responsibility of providing adequate services to consumers and
even taking feedback from them related to loopholes in their services. It is direct interaction
between seller and consumers for making a purchase. Offering an amazing consumer service can
help in retaining customers and also because of this firm can be able to grow.
5.4 Finance
It is an integral function of business where there is an acquisition, financing and
management of assets. In this matters related to better management and investment of money is
done. There are various activities which are been performed by finance department such as
investing, lending, saving. The people working in finance department makes sure that there is an
adequate amount of cash flow, in business so that there is no cash deficiency.
5.5 Research and Development
Research and development business function is either staffed with engineers and they are
provided with responsibility to bring new innovation, products, trends and services. This
department is important as it decides future of company. It gives company essential information
so that better strategic decision can be taken. By investing in R&D firm can enhance their
technology and future capabilities.
5.6 Sales
Sales is the activity which is been related to selling various number of goods so that the
profit of company can be increased. The sales department in an organization is provided with
responsibility to make sure that sales run effectively. There are various objectives performed by
sales department such as converting sales and customer acquisition. Sales help in growing of
business and meeting out needs of consumers.
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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
There are various skills which needs to be possess by marketing employees. In this they
should have better interpersonal skills so that worker can be able to connect better with
consumers. They will be able to identify consumers’ needs and demands by better interpersonal
skills. The marketer must be good with written and oral communication in order to attract large
range of consumers. This skill is most important for connecting with customers and driving
engagement. It has also been analysed that marketer should also consist of ability to work in
team so that productivity and operational efficiency of company can be improved and enhanced.
6.2 Skills needed by Human Resource Management employees
There are different abilities and skills which needs to be possess by human resource
management employees. It includes maintain proper and adequate employee relations. They
must have an ability to manage and solve conflict between two employees. Better connection
should be made with workers so that they can be retained. Team working and collaboration is
another set of skill which is been required by HR employees (Shams et.al., (2018). This is
because HR professionals are being involved in finding and creating best workplace so that
mission and vision of firm can be achieved. They must have skill and ability to adopt
responsibilities which is been done by them. Employers are also seeking for HR candidate to
have scheduling abilities so that they can prioritise task and achieve their goals.
6.3 Skills needed by Customer Service employees
Better consumer service is holy grace of business, so for this adequate skills are required
by workers. In this it is really necessary that workers have adequate persuasive speaking skills.
This will assist them in influencing and consumer and also they can be able to find better
solution to customer problems. A worker must be emphatic towards their customers. They need
to patient while solving their issues. They must have ability to listen so that better opportunity
can be created. It will also assist them in making sure that consumer loyalty is been increased.
Employees also need to have ability to adapt.
6.4 Skills needed by Finance employees
In order to work as a finance employee, it is really necessary to have basic accounting
qualification. Finance professionals are required to have interpersonal skills. This will assist
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them in building successful relationship with consumers for long term. The other most important
skill is financial reporting. Organizations are also looking for those persons who have better
analytical abilities. This is necessary as it will help employees in analyzing situation and coming
up to better conclusion. It is also mandatory that finance workers have better problem solving
skills so that adequate decision can be made which is necessary for success of company.
6.5 Skills needed by Research and Development employees
A researcher needs to have adequate skills for managing project. They should have ability
to make the other staff members understand the latest trend brought up by them. R&D employees
also needs to have ability to make budget. The data needs to be handled by them adequately
including the lab experiments, managing statistics. They must possess adequate IT skills so that
data can be managed online adequately. This will assist them in enhancing consumer experience
and will also assist in growing as well as achieving objectives.
6.6 Skills needed by Sales employees
Different type of skills is also required by sales worker. They should possess good oral and
written communication skill (Rendon & Snider, (2019). It will assist them in influencing
consumers and also because of this they will be engaged in buying goods and services from
them. It has also been analysed that they should also have listening skills. This will assist them in
analysing issues and solving them by increasing sales of company. These skills are really
necessary for growth of company. Sales worker should also have ability to communicate softly
and politely. This will assist business in achieving goals.
7.0 Conclusion
From the above study it has been summarised that there are various business functions that
assists an organisation in growing and achieving set target as well as objectives. The human
resource has been involved in doing proper planning and controlling which has increased
productivity. It has also been analysed that various skills and abilities are required to perform in
different departments like these. In marketing department worker has skill to analyse trend and
data so that objective can be achieved. This has assisted business in growing and achieving
mission.
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REFERENCES
Books and Journals
Chen, Y., Liu, X., Li, X., Liu, X., Yao, Y., Hu, G., ... & Pei, F. (2017). Delineating urban
functional areas with building-level social media data: A dynamic time warping (DTW)
distance based k-medoids method. Landscape and Urban Planning, 160, 48-60.
Facco, G., Romano, L. N., & dos Santos, C. G. (2017). Cooperation of functional areas in
agricultural machinery development process. Product: Management and
Development, 15(1), 1-7.
Nalawade, R. K., More, D. K., & Bhola, S. S. (2019). Employability Skills Required for
Functional Areas of Management. IUP Journal of Soft Skills, 13(1).
Rendon, R. G., & Snider, K. F. (2019). Management of defense acquisition projects. American
Institute of Aeronautics and Astronautics, Inc..
Shams, S. R., Vrontis, D., Weber, Y., & Tsoukatos, E. (2018). An integrated cross-functional
model of strategic innovation management in business: The implications of ten cross-
functional business areas. In Business Models for Strategic Innovation: Cross-Functional
Perspectives (pp. 176-186). Taylor and Francis.
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