CLASS-4-6B WEEK OF OCTOBER 12TH, 2020

SESSION 9-FUNCTIONAL AREAS IN BUSINESS

Objectives:
 What are functional areas in a business
 Roles played by each Functional area of a business
 Illustrations of each Functional Area/Department
VIDEO SHOWING FUNCTIONAL AREAS OF A BUSINESS
Introduction: The term functional areas of a business refers to grouping individuals on the basis of
the role or purpose each performs in the organization. These functional areas are also known as
Departments. There are typically five functional areas of a business:
 Production
 Marketing
 Finance
 Human Resources
 Research and Development

Production: This functional area or department typically deals with the processes and methods used by
producers to convert the raw materials into a finished product. However, it does include the creation of
services as well. It is usually headed by a Production Manager and there is a Factory Supervisor and all
factory workers are in this department.

PREPARED BY HEIDI BIDAISEE

Marketing: refers to all the processes involved in promoting and selling goods or services in the most
profitable and efficient manner. It includes market research and advertising, as well as the actual selling
to customers. It includes co-ordinating four elements known as the 4P’s or marketing mix; these are
Product, Pricing, Promotion and Place. It is indeed a dynamic and interesting department where
creativity is encouraged.

Finance-Finance is possibly the most important resource of all business functional areas. It is the
lifeblood of the business. It plays a vital role in that it provides access to all the resources employed in
the production and marketing of products and services. Finance therefore controls all the money in the
business. They record all funds/money coming into the business and all leaving the business.

PREPARED BY HEIDI BIDAISEE

Human Resources: This department also known as (HR) is concerned with managing people. It
includes recruitment and selection of people with the appropriate skills and experience to meet the
needs of the organization. It includes activities like; remuneration (pay packages), benefits,
compensation for injuries on the job, leave records, employee relations, compliance, training and
development and even termination of jobs!

Research and Development- is the investigative activity a business carries out with the aim of getting
new knowledge that it can use to create new products or systems. It can be done in-house by the
internal staff or can be contracted to outside consultants. It helps the business to develop better quality
products etc.

PREPARED BY HEIDI BIDAISEE

CLASS-4-6B WEEK OF OCTOBER 12TH, 2020
SESSION 10-STAKEHOLDERS IN BUSINESS

Objectives:
 Definition of Stakeholders
 Roles of each Stakeholder of a Business

VIDEO ON STAKEHOLDERS IN BUSINESS

Introduction-A stakeholder is any individual or groups of individuals who have a vested interest in a
business. These are people who are affected by the decisions made by a business. They typically
include; the owners, customers, suppliers, employees, society/community, government and
environmental groups.

PREPARED BY HEIDI BIDAISEE

Roles of Management towards the Stakeholders:
 Owners-are the major stakeholders. They have invested their money into the business and
therefore have a “stake” in the business and look forward to getting a return on their investment
in the form of profits and an increase in the value of their shares. Management has a
responsibility to report to the owners. The owners also have a role to play by providing the
necessary resources that are needed, employing suitable workers and ensuring those workers are
provided with safe working conditions and a fair wage.

 Customers-are dependent on businesses for their supply of goods and services. They look
forward to quality and value for their money. Management has a responsibility to provide safe,
quality goods in a safe, clean environment and to carry out fair trading practices.

 Suppliers-businesses depend on suppliers for a reliable delivery of the raw materials that are
needed for their production. Management has a responsibility to pay suppliers on time to keep
their business.

 Employees-are very important to the survival of a business. Management has a responsibility to

pay fair wages and provide safe working conditions. When employees are satisfied, their
productivity increases, making it better for the business.

 Community/Society has a vested interest in business as many of the decisions made directly
affect them. Management has a responsibility to ensure they comply with laws and to help
develop the community by providing local employment, giving donations to the needy,
embarking on enhancement and beautification projects for the community.

 Government-is another stakeholder of a business as the business pays corporation taxes to the
government. Also, by exporting products, the businesses are helping the government by bringing
in foreign exchange. Also businesses provide employment thus relieving the government of the
burden of dependents on the state. The businesses have a responsibility to uphold the laws of the
government and to pay taxes on time.

 Environmental Groups-these might be small groups in society who pay particular attention to
the activities of the businesses and lobbies for adherence to the environmental laws, they
promote recycling, keeping the environment clean, enforce safety in animal testing and try to
encourage the reduction of pollution.

PREPARED BY HEIDI BIDAISEE