Friday, February 11, 2011

Business Functions

The components necessary to get a business functional are called Business Functions.

A look at any business and you would generally find the following components.
  • Sales and Service - these are customer facing function and for the driving edge of the company
  • Marketing - this is the showcase of your company & its products(is generally clubbed with sales)
  • Human Resource & Administration - the crucial internal people function to ensure satisfaction and get them excited about work
  • Research & Development - Product improvement and innovation is a key factor to sustain in the ever changing environment, also includes product design based on market research inputs.
  • Operations/Production - Involves the process of creation of the product including the procurement, and product development form the parts.
  • Information Technology - Essential aid to smooth operations ensures improving the internal functioning of business
  • Accounting and Finance - Ensures that the company’s financial records are maintained and products are funded aptly.
Here is a pictorial depiction prepared by Parinathi Labs depicting the business functions

Based on the business area and the model they choose to operate the companies would have a particular function larger than the others. Say in a HR services firm, would be specialize itself into the HR function, and the operations function would be less dominant, but the trend reverses in a manufacturing company, where the emphasis is higher on operations and production rather than on HR.

Every company has all these functions, but the relative importance attached to each would vary.

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