Function approach

- The function approach examine an organization's operations and performance. The function
approach focuses on the responsibilities and roles of each department within an
organization, and the ways in which their functions contribute to overall organizational
performance. The function approach provides managers with the knowledge and
background they need to make strategic decisions and allocate resources in a way that
maximizes the organization's potential.
- These areas includes production ,marketing , finance human chcuchcu and all of this 6 have
goal to have sales , gain profit , acquired good will and cost reduction

Production approach

- Production may be defined as a process through which a firm transforms inputs into output.
In other words production transforms inputs into ouput , where in inputs are the raw
materials and outputs are the finished products.

It is the process of creating goods and services with the help of factors of production or inputs for
satisfaction of human wants. Capacity means pila ka maximum output ma produced in given period
of time. When analyzing the financial performance of a company, analysts often look at its capacity,
which is a key indicator of how many units the company can produce. Inventory is the stock of goods
owned by a business that is kept to be used for further production of goods or for sale. It consists of
the items that are currently being used to produce or serve the customers. It is important to keep
the inventory levels within the business in order to avoid financial losses. It is also important to
manage the inventory in a systematic way so that the business can function smoothly. Workforce are
those production worker which they helps with the proper functioning of assembly lines in factories
and warehouses, and is responsible for the efficient use of all types of equipment in the production
process. Quality management , One of the most important aspects of running a successful
business is ensuring that it delivers the quality that customers expect. When a company’s
products or services fall short of customer expectations, it can have a significant impact on
its ability to generate revenue. Quality management ensure that an organization, product or
service is consistently high quality. It involves identifying the needs of the customer,
determining the best way to meet those needs and continually improving on the quality of the
product or service.

Marketing approach

- An organization's marketing activities are those carried out to make a good or service
known to and appealing to potential customers. They are also those activities that
create demand for that product by driving awareness and interest . Think of
marketing as a bridge from the producer to the consumer In order for the
marketing bridge to work correctly you need to provide consumers with opportunities
to purchase the products and services they need – 
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the marketing must accomplish following important functions

 Product lines and product features - Companies have been adding more products to
their shelves in an effort to attract new buyers. Specifically, they have been trying to
attract buyers who are familiar with the brand. This is because many companies have
noticed that their current customers are buying the same products as always, but their
 sales have not increased as much as they had hoped. So, companies have been trying
to increase sales by attracting new buyers, who are familiar with the brand and
therefore more likely to buy the product.

 Pricing- The process of setting and adjusting prices to maximize profit and satisfy
customer perceptions of value is known as pricing. The most effective pricing strategy
involves understanding the customer and the market, considering current market
conditions and competitors’ pricing, and developing a plan to reach the best balance
between profitability and customer satisfaction.
 Advertising- Advertising is the act of promoting a company and its products or
services through paid channels. It is the most common form of marketing, and is used
to drive sales and attract new customers. Traditional advertising is the use of media
such as newspapers, magazines, radio, and television to reach a target audience and is
often associated with brand awareness and name recognition. Today, digital
advertising is a major form of advertising, and is used to reach a defined audience and
generate measurable results.
 Distribution - The distribution of goods is the process of making a product or service
available for the consumer or business user who needs it. This process includes the
steps of locating products or services, securing the product or service, and delivering
the product or service to the intended user. The distribution of goods is often
achieved through the marketing of products or services, which is the process of
identifying the needs of the consumer or business user, and the communication of the
product or service to the consumer or business user. The distribution of goods also
includes the logistics of the product or service, which is the process of the product or
service being physically transported from the point of origin to the point of
destination.,.
 Marketing Information - information from around the world about market conditions,,
can affect the marketing process. Market information is provided by all forms of
telecommunication, such as television, the internet, and mobile phone .As the
demand for various products in market have raised, the amount of information needed
has also increase so that’s why many businessman to secure information regarding
quality of goods, method of packing, test and of goods , procedure of distribution. It
helps the controlling of marketing activities. It helps effective tapping of marketing
opportunities and effective defence against marketing threats. It helps the firm to
adjust its product and services to the needs and taste of customers.

Human resource management

- the personnel function has grown from the employment function. now a days human
resource management covers a much broader spectrum of activities than merely
hiring and firing. they also responsible for staff appraisal, labour negotiations,
contract administration
- retaining good employees are retaining talented employees can be a
significant source of competitive advantage which is why many companies
even have their own talented management departments,
finance function - The Financing function is responsible for planning for, obtaining, and
managing a company’s funds. They responsible for ensuring a company’s financial well-
being by ensuring that the right amount of money is being allocated to the right projects and
investments. They also ensure that the company’s financial statements are accurate and up-
to-date, and that they comply with federal and state laws and regulations This sometimes
involves arranging loans and investments from suppliers, banks, and other investors. They
work with the Accounting department to ensure that the right accounting records are kept,
and they also have access to the company’s financial statements. They are a critical part of
a company’s operations, and they must be able to make quick decisions when a situation
arises. They are often considered the front line of a company’s operations, and they are
often the first to know when a company is in financial distress.

- basic function of finance is to allocate capital to long term such as stocks and bonds -
Capital budgeting important decision in business management that allows a company
to allocate money to long-term . it is is way of setting aside a portion of cash of
within-company earnings for investments in the future. It is a tool that helps in
allocating resources and key part of the overall investment strategy of any business,
big or small firm , finance really helps tp determine investments to a certain
organization to make maximize long term value and return on investment

- . When a company pays a dividend, it is a payment of the earnings that it has already
accumulated and not a payment of an uncertain future. If the company pays a large
dividend, then the distribution payout may be in the form of a single cash payment, a
series of cash payments, or a series of property payments. But the key function a
finance performs in case of profitability is to decide whether to distribute all the
profits to the shareholder or distribute part of the profits to the shareholder and retain
the other half in the business .its their responsibility to decide a dividend policy which
maximizes the market value of the firm. Hence an dividend payout ratio is
calculated. These financial ratios help business to monitor the performance of the
company, they usually presented in financial statement usually income and balance
sheet. So financial ratio are divided into 4 categories , namely liquidity , solvency ,
activity and profitability. Specifcally, liquidity ratios measure the entity's ability to
meet its short-term obligations. Therefore ,liquidity is the ability of an entity,or any
other party,to meet its current obligations when they become due. We can say A
company is liquid if it has enough current aasets, usually cash.to finance its short-
term liabilities. Solvency ratios, provide us information regarding the entity's ability to
meet all of its liabilities. As such, solvency is the capability of a company to pay off all
of its obligations, particularly its long-term liabilities we can say an . in such , An
entity can be solvent but liquidate at the same time. This means that the company
has more assets than liabilities, but does not have sufficient resources to settle its
current liabilities as they become due .Activity ratios give us an idea on the
company's effciency; they tell us how the entity managed their resources to minimize
their operations. It would determine how fast are they able to generate cash flows as
well as how efficient are they in generating sales from use of their assets. Profitability
ratios give information about the company's ability to generate returns to the
company. It would show how large of a return the company can generate for every
peso investment made by the owner as well as determine how much of a return can
be generated from the use of the company's assets.
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research and development

research and development

- No matter how big or small the business, research and development are essential to
a company's success and the growth of the economy. This means that if you want to
be able to participate in the thriving of an innovative and cutting-edge market, you
should emphasize it within your own business as it pertains to the larger interests to
your business . R&D is also necessary if you want to be able to differentiate yourself
from your rivals and establish a household name because it allows you to create
innovative new goods or services that either meet needs that few other companies
can stand out from your competitors
General management

- A general manager oversees the overall operations of the business while enhancing
productivity and boosting departmental profits.

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value chain

- ideally, the company’s products pass through the activities of the value chain and
along the way each activity adds value to the products. When managing the value
chain system, the idea is to optimize the chain so as to maximize value while
minimizing cost. A business must use its value chain activities to create value, and
then capture that value. The value created by this chain should exceed the sum of
the values added by each individual activity.
- porters value chain diagnoses the company into strategically important activities and
evaluates the impact on company cost and value behavior. porters outlines the value
chain as the internal processes through which the company designs, produces, sells,
delivers and supports its product. cost is no longer treated as an expense that goes
to the profit and loss account, but it is treated as value that accumulates to company
wealth as shown in balances sheet. porter indicates that 'a company's value chain
and the way it performs individual activities are a refection of its history, its strategy,
its approach of implementing its strategy, and the underlying economics of the
activities themselves.
So lets take a look of porters value chain diagram

The gap between the value created and the cost of creating that output is known as your margin.
The purpose of value chain is to help you understand the activities within your business that
create value or create margin. Once you understand this you can invest more in your value
creation and eliminate unnecessary business activities that aren’t adding any value by doing this
you’ll gain competitive advantage and increase your margin

diagram is broken down into two categories so first we have primary activities that directly
develop your inputs into outputs and note this primary activities are drawn in order for example
inbound logistics happens before outbound logistics and secondly we have support activities these
help your primary activities run more smoothly so let’s take a look a deeper look at both of these
categories. So firstly primary activities now each of your primary activities will directly relate to
the creation of your product or service . So first we have inbound logistics so this is the process
orchestrating the receipt of inputs and then storing and distributing them internally next we have
operations so once in inbound logistics have moved the goods to the right location operations turn
your inputs to your outputs next we have Outbound logistics and these deliver your product to
your customer once operations have produced it now for physical products this mean that you
dispatch the product immediately or store it for a period of time , next we have marketing sales
just because you have created a product that Doesn’t mean that your market knows about it or
even wants to buy it so marketing and sales are responsible for ensuring the market knows about
your market and wants to buy it and there are numerous sub categories of marketing that I’ve
already earlier involved advertising e.tc.. finally we have service and these activities are those
that occur after you have made the sale and their purpose is to maintain and grow your product or
service value after you have sold it. So this includes things like customer service activities to
reduce churn customer training and activities to grow or maintain engagement with your product .

So let’s take a look at support activities as I said earlier support activities are activities support
your primary activities to run smoothly and the dotted line you see in the diagram shows that
support activities can help a specific primary activities and also play a vital role across all primary
activities. So for example human resources management supports marketing and sale but it could
also support logistics. So first activities is procurement , now this is the process of purchasing the
inputs you need and it’s also known as purchasing and it involves finding new suppliers and
negotiating the best price , next we have human resource management this activity involves
hiring training rewarding employee well-being and retaining good employees are in today's
knowledge economy finding and retaining talented employees can be a significant source of
competitive advantage which is why many companies even have their own talented management
departments, The next category is technology development and this refers to any technology
needed to support turning your inputs into outputs technology development includes software
and hardware infrastructure and procedures used to create your output now one thing to note
here is it also includes your r&d or research and development department finally we have firm
infrastructure and this is catched all activities functions that support the entire value chain now
note that this infrastructure is the only support activity in the diagram that doesn't have ducted
lines going through it and that is to indicate that it truly supports all primary activities equally now
subactivities here include general management finance and legal team .