Saturday, April 10, 2021

How Understanding Business Functions Is Crucial To Its Success

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Running a business is no walk in the park. Each business requires different departments, various employees, and functions to operate smoothly and generate revenue. A well-structured company consists of experts in each department responsible for carrying out the specialized tasks. Dividing various business operations into different units increases the overall performance of the organization.

Business function refers to a particular department’s activities and procedures to meet the business goals and objectives. Although these functions correlate with each other, they never cross-check or overlap. The operations may vary from company to company, but some of the typical business functions include.

  1. ACCOUNTS AND FINANCE 

The finance function plays a critical role in budgeting expenses for any business operations. These expenses may include procurement of equipment or tools costs, marketing expenditure, and operational costs. The financial experts are also responsible for overseeing the spending, profits, and losses and making vital financial decisions to enhance the growth. Accountants provide information and financial reports to the finance department that determines a company’s financial health and helps in decision-making.

Most organizations are looking for employees that have strong knowledge to analyze and manage finance and accounts. Due to their high demand, business schools are offering MBA programs. Previously these programs required students to pass GRE or GMAT tests to enroll. However, lately many schools are dropping this criterion as it does not forecast students’ academic performance. Thus, students struggling to attend full-time school can pursue aacsb online mba no gmat program and work as a senior officer such as administrators or analysts.

  1. OPERATIONS

The operations department mainly comprises the transformation of raw material into final products. Primarily, the production of goods, commodities, and services that a company wishes to sell takes place here, keeping in mind the given budget. However, the production quantity depends on the prediction provided by the supply and demand planning department. Operations are the crux of every industry, no matter big or small; it is responsible for meeting the customers’ expectations and needs. An operational director’s everyday tasks include supervising procedures, arranging resources, and ensuring that workers meet the deadlines.

The operations function plays a vital role as it can either sink or swim the business. It helps track how efficient the employees and management are and how they can bridge the gap to further progress. All in all, this function’s performance impacts the image and the level of lucrativeness of a company.

  1. CUSTOMER SERVICE

When it comes to customer service, the first thought that crosses people’s minds is being respectful. However, customer service is not just about it. It also involves attending calls, training other workers, staying up-to-date with products or services to provide support to customers in case of any issue. They also guide the customer base about installing products, their warranties, fixing the damage, and even giving compensation. Generally speaking, customer service is all about providing unbiased services to customers, making them feel special, and showing how valued they are.

With all these overwhelming duties, customer service proves to be an essential aspect of every business. Poor customer service can tarnish a company’s reputation. All the efforts that a company has been making all day will go down the drain. Companies should educate their employees about dealing with customers with the utmost respect and being prompt about their queries. Moreover, businesses can now save plenty of time and money with social media platforms and decrease employees’ workload.

 

  1. HUMAN RESOURCES 

The HR department is responsible for dealing with the human side of any organization. The HR function of any business ensures the workforce is performing its tasks effectively. For this reason, the HR specialist recruits employees with a robust skillset and greater adaptability to align their performance with the company’s goals. Their job doesn’t stop here; they keep monitoring each employee’s performance and deal with salaries, promotion, and transfers issues. They also encourage different departments to conduct training and workshops. It comes as no surprise that businesses with the right employees and strong teamwork succeed. Therefore, companies must have efficient human resource functions to thrive and grow in the business world.

  1. SALES AND MARKETING

As the name suggests, sales and marketing’s primary role is to promote business and its services and increase revenue. The sales experts or marketing specialists are in charge of identifying the latest industry trends and determining their needs and demands. They track the brand’s image on social media platforms and monitor clients’ and investors’ behavior towards the brand.

The marketing department is responsible for spreading brand awareness and luring the target market to buy their services and products. They create advertising campaigns and promotional materials such as infographics, brochures, etc., to attract new customers and partners and retain the old ones. It also focuses on developing sound strategies and monitors what offers most customers are purchasing. Businesses with a clear understanding of sales and marketing functions can meet the customers’ demand and grow their business more effectively.

  1. RESEARCH AND DEVELOPMENT

Let’s admit it; no business can survive in this ever-evolving world if they do not research new trends and develop new products. The business industry is highly competitive, and companies are bound to become extinct if they do not provide varieties or introduce new products. Thus, the research and development (R&D) department of any business is responsible for a company’s survival and success. The R&D function of a business is crucial as it analyzes the trend and looks for improvement areas to thrive in the market. Businesses having sound R&D functions can increase the efficiency of their performance and minimize expenses.

  1. INFORMATION & TECHNOLOGY (IT)

Gone are the days when companies used to keep a record of every single piece of paperwork. Today, it comes as no surprise that every other business is incorporating modern technologies to facilitate its operations. Many people realize and agree with the significance of information technology in organizations. However, only a few understand its importance. Without it, no business can thrive in this era, considering how every aspect of our lives revolves around technology. It encompasses automation of processes, outlining new hardware and public relations, eliminating manual methods. Aside from this, employing IT services can make networking easier as employees can collaborate with other departments’ professionals to achieve organizations’ goals.

FINAL WORDS

These core business functions have their aims and purpose; however, they rely on each other. When one business function works towards its objectives and at the same time recognizes the goals of others also, only then can an organization step up at the success ladder. Additionally, companies should hire individuals with a complete understanding of these functions and strong analytical skills to make strategic decisions and survive down the road.

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Teodora Torrendohttps://www.ccdiscovery.com
Teodora Torrendo is an investigative journalist and is a correspondent for European Union. She is based in Zurich in Switzerland and her field of work include covering human rights violations which take place in the various countries in and outside Europe. She also reports about the political situation in European Union. She has worked with some reputed companies in Europe and is currently contributing to USA News as a freelance journalist. As someone who has a Masters’ degree in Human Rights she also delivers lectures on Intercultural Management to students of Human Rights. She is also an authority on the Arab world politics and their diversity.

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