Business Functions
General Management
- Manage all the departments
- Perform management tasks
- POLC
- Formulate Vision, mission, objectives and strategies
- Different leadership styles
- Autocratic
- Democratic
Purchasing
- Buys goods and services for all departments
- Source suitable suppliers
- Ensure best ROI by keeping costs low
- Return on Investment
- Economies of scale
- Check that goods ordered are correct quality and quantity on delivery
- Maintain stock levels
Production
- Combines factors of production to provide a product to the consumer
- Keep manufacturing costs low and maintain quality
- Combine with marketing department to meet consumer demands through innovation
Production (Automation)
- Automation: activities performed by hands are now performed by machines
- Advantages
- Lower labor costs and machines continue to work without breaks or holiday
- Faster production times
- Disadvantages
- Large capital investment
- Job losses
- Possible monotonous job causing dissatisfaction
- Additional costs in retraining
Production (Quality Control)
- Influenced by raw materials, layout machinery, working conditions
- Sampling
- A few products of a batch are tested
- Inspections
- Each product is tested
- Advantages of quality control
- Eliminate problems in production and therefore reduces costs
- Encourage workers to deliver goods at a high standard
- Basis for remuneration decisions
- Create confidence in the product and result in repeat orders