L3 Business - Business functions

A functional area that is responsible for researching new, innovative and viable products and ideas and then developing these into commercially viable products. The extent of which this functional area is vital depends on a number of factors, such as the industry and the available finance.

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This is the purchasing of raw materials, goods and services for a business. A business needs to identify suitable suppliers who will provide the goods and services needed for the business to carry out its activities.

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This is responsible for producing the products to the expected standard. This functional area controls all the production inputs and works closely with the human resource department to ensure the appropriate number of employees with the requisite skills are available for the production process.

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The management of the flow of products, services, equipment, people, money and information from the source to the end user. It is concerned about getting everything in the right place for when it is needed.

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Responsible for generating revenue through the sales of products and services; ultimately aiming for profit. It often coordinates with the marketing department to create sales promotions, raise brand awareness and with the launch of products. Employees within this functional area will be tasked with developing ways to sell the products and services to the target audience.

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Responsible for the interaction with customers. They will deal with everything from enquiries and advice to complaints and feedback. Creating and maintaining good relationships and rapport with customers is vital in creating loyal customers. This department will be responsible for customer interaction from before the sale, through to the after sales.

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This department is responsible for the promotion of the business and its goods or services with the aim of increasing sales. They will create and implement various marketing strategies from sales promotions to advertising. They do these with the intention of informing customers of the retail businesses’ products and services.

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This department manages the budget and the money within the business. It is responsible for creating and monitoring the budget and the financial documents, such as the profit and loss account, and the cash flow. Managing the incomings and outgoings of the business is essential to ensure that the business has enough money to pay its costs and expenses at any one time.

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Responsible for recruiting the correct people who have the appropriate skills, qualifications and experience. They are also responsible for the training and motivation of staff and for deciding the salaries of different levels of staff.

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This department is responsible for all digital data, processes and platforms within the business.

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