BMP3004 - IOM Electronics Ltd: Functional Areas and Employee Skills

This report analyzes the functional areas within a business organization, focusing on IOM Electronics Ltd, recently acquired by a lottery winner. It details the four primary functional areas: marketing, human resources, operations, and finance, explaining their roles and responsibilities within the company. The report also identifies essential skills for employees to function effectively in each area, including financial accounting, business management, leadership, communication, decision-making, and creativity. It emphasizes the importance of these skills for IOM Electronics Ltd to achieve its objectives and operate successfully. The document is available on Desklib, a platform offering study tools and solved assignments for students.

Functional Areas

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Describing the different functional areas in business organisation.............................................1
Describing different types of skills that is required in employees in order to make them able to
work effectively in these functional areas...................................................................................2
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Functional areas of the business are refers to different functions of the business which is
need to manage and operate them in efficient as well as effective manner (Enander, 2018). This
will make company to operate their business and earn maximum profit in effective manner. The
following report is about a local company of UK that is IOM Electronics Ltd which is recently
purchased by John from his lottery winning amount. He has very less experience about business
so, he take advice from consultant about various functional areas in business organisation along
with the different types of skills needed by employees to work effectively in functional areas.
MAIN BODY
Describing the different functional areas in business organisation
Business is an entity which is manage and operate effectively in order to produce
products and service in effective manner. In businesses its tasks are separated into different
functional activities. These functional activities are grouped into four basic functional areas
which includes marketing, human resource, operations and finance. All these functional areas are
need to work together in business in order to achieve organisational goals and objectives in
effective manner. In context of IOM Electronics Ltd, its functional areas and their functions in
the business are discuss below:
Marketing- This functions are used in finding the needs and wants of target customers as
well as promote products and services of company in effective manner. The functions perform
by marketing are advertising, promotion, market research and selling products in the market
effectively (Enz, Schwieterman and Lambert, 2019). In respect of IOM Electronics Ltd, it helps
them to advertise their offerings through effective sources such as television or radio. It can also
used online sources such as social media, emails, websites and many more in order to advertise
their offerings in most effective manner. It can also help company in market research in which
company can collect information related to customers needs and wants in order to make their
offerings effective. It assist them to promote and sell their offerings in effective manner.
Human resources- This functional areas are used in business in order to manage the
people who work in the organisation in effective manner. It helps company in recruitment and
selection of employees, training and development, industrial relations and maintaining health and
safety of the employees in effective manner. In regards of IOM Electronics Ltd, it helps them to
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select right people for the right job in order to make them work effectively in the business. It also
provide training to employees in order improve their skills and make them productive for the
company. This will enable them to provide effective quality service to their potential customers
in effective manner. It makes effective relationship in between employer and employee by
improving working conditions, contracts of employment and grievances in the company. It
ensure workers to perform according to the guidelines of health and safety legislations.
Operations- This functional areas are responsible for producing products and providing
effective service. It also has a responsibility to get ensure the quality of product and service in
order to satisfy customers in effective manner (Field, 2021). The functions perform by operating
functional area in the business are buying raw materials, production of goods and services and
controlling the quality in effective manner. In case of IOM Electronics Ltd, this helps them to
manage stock, choose most effective and suitable production method and distribute final
products to the retailers or customers in effective manner. It also ensure in purchasing cost
effective and high quality raw materials in effective manner.
Finance- This helps companies to manage inflow and outflow of money in the company
in effective manner. This will help company to deal with all financial aspects of company which
includes, paying to suppliers, wages to staff and received payments from the customers (Huesig
and Endres, 2018). This also perform many functions in the business such as raising finance,
preparing final accounts and budgets. In aspect of IOM Electronics Ltd, it is responsible to
ensure about enough money in order to pay bills. In order to conduct this effectively, this will
help them in raising extra finance by taking loan from bank or grants. It is essential for them in
order to make plan for incoming and outgoing of the money with the help of budgets. It also
makes company's final account in order to analyse profit and loss earn by the company in its
financial period.
Describing different types of skills that is required in employees in order to make them able to
work effectively in these functional areas.
Skills provides an ability to an individual to perform their work in effective manner as
well as achieve their target effectively. In order to manage and operate different functional areas
of the business certain skills are required in employees in order to perform their work in effective
manner. In point of IOM Electronics Ltd, various types of skills are required in its employees in
order to operate the business are described below:
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Financial Accounting skills- It is a most important skill for those employees who are
performing in financial department of the company. In which they have the knowledge about
various methods and concepts of finance such as cash flow analysis, ratio analysis and so on, in
order to understand the company's performance and potential in effective manner (Kalabina and
Belyak, 2021). They also know how to read and interpret a balance sheet in order to understand
the financial result of the company in effective manner. In accordance with IOM Electronics Ltd,
it is important for their employees in order to make effective financial decision and improve their
financial position in effective manner.
Business Management Skills- It is important for the company it has a intrinsically link
with the organisational performance in effective manner. This will make employees effective in
order to manage different functions of the company together to make them effective for
achieving goals and objectives in effective manner. In account of IOM Electronics Ltd, it makes
their employees in order to help company to make effective decision for managing their all
functions effectively.
Leadership Skills- It is important for the company to achieve success in effective
manner. It makes employee who is leader of the department to focus on their other members of
its department as well as vision that guide change (Laurent and Leicht, 2019). It makes them
effective in order to help their subordinates to perform their work in effective manner. In esteem
of IOM Electronics Ltd, this will make their employees to understand the vision and set them
effectively in order to make their team to get success in effective manner.
Communication skills- It is most effective skills for the employees, that makes them to
interact with the other employees and customers in effective manner. This will makes them to
understand what other says in order to make them easier to perform their work in effective
manner. In context of IOM Electronics Ltd, this will helps their marketing department to interact
with their customers effectively in order to understand their needs and wants. It assist its HR
department to interact or communicate with employees effectively in order to make better to
perform their work in the organisation.
Decision making skills- All company needs to have employees who can make decision
effectively in order to perform their work in effective manner. In case of IOM Electronics Ltd, it
is most important for its operating department to allocate its resources effectively in order to get
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better output from it in effective manner. It also important in other departments employees in
order to make effective decision to get effective success from it in effective manner.
Creativity- It is most crucial skill which is needed in all employees in order to present as
well as imagine future possibilities in fast changing environment of the company in effective
manner (Li, 2021). In respect of ION Electronics Ltd, this will help employees in order to think
creative for the development of their products that helps in fulfilling the needs and wants of
customer in effective manner.
CONCLUSION
From the above mentioned report, it is concluded that functional areas in the business are
important functions of the business that are divided in different departments or groups in order to
manage and operate business without any confusion and complication. Marketing, human
resource, finance and operations are four basic functional areas of the business which helps them
to achieve success effectively and operate the whole business in effective manner. Financial
Accounting, Business Management, Leadership, Communication, Decision making and
Creativity are some skills that are required in employees in order to perform effectively in all
functional areas of the business in effective manner.
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REFERENCES
Books and Journals:
Enander, M., 2018. Optimering av tankcontainerlastningar för Akzo Nobel Functional Chemicals
i Stenungsund.
Enz, M.G., Schwieterman, M.A. and Lambert, D.M., 2019. Stock keeping unit rationalization: a
cross-functional, cross-firm perspective. The International Journal of Logistics
Management.
Field, T.L., 2021. A Just Energy Transition and Functional Federalism: The Case of South
Africa. Transnational Environmental Law, 10(2), pp.237-261.
Huesig, S. and Endres, H., 2018. Exploring the digital innovation process: The role of
functionality for the adoption of innovation management software by innovation
managers. European Journal of Innovation Management.
Kalabina, E. and Belyak, O., 2021. The Influence of Cross-Functional Teams on the
Development of the Companies’ Absorption Ability in the Conditions of Work 4.0.
In Digital Transformation and New Challenges (pp. 183-199). Springer, Cham.
Laurent, J. and Leicht, R.M., 2019. Practices for designing cross-functional teams for integrated
project delivery. Journal of Construction Engineering and Management, 145(3),
p.05019001.
Li, J., 2021. TMT functional complementarity and post-IPO firm performance: Evidence from
the US biotechnology industry. Long Range Planning, p.102178.
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