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.
Read Kannada blog: http://somanagement.blogspot.com/2011/02/blog-post_11.html