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Functional areas of business.

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Functional areas A business unit is a unit of production that sets out to bring together and to organise factors of production to produce goods and services. Te factors of production are te ingredients that make an enterprise work. The factors of production: Land: buildings (site where the business is located) Labour: Mangers, workers (any jobs roles that need to be filled) Capital: equipment, machinery needed Enterprise: the willingness to take risks to earn a profit Every public limited company has organisational functions these are the main activities of the following areas at Cadbury, which allow it to exist and become a successful business. Finance The finance department is in charge of and deals with money. The Finance department keeps records of all financial documents this involves reporting and recording expenses spent and profit made, asset value and cash flow. Since Cadbury is a limited company the finance department must, each year, file with Register of Companies a set of audited accounts. These will include a director's report, auditor's report, profit and loss account, balance sheet, source and application of funds and an explanation of these accounts. It is also necessary to file an annual return giving details of the directors, shareholders and other information required by law. All this information will be kept on file at Companies House and is opened to inspection by member's public. ...read more.


In order to make the production line work smoothly, Cadbury insures each operation must be of equal length and there should no movements or leakages from the line. E.g. hold ups to work in process. Because there is a continual demand for chocolate this process (flow production) is successful. This is diagram shows a flow of production: Stage 1 Stage 2 Stage 3 Machine A's machine B's Machine C's Before production takes place, a brief is done, to find out what to produce? Then it is backed up by primary and secondary research. This will help Cadbury to achieve their objective to give satisfaction to customers through selling them a certain product for certain price, will also help them operate in a wide range of markets and Help Cadbury to be noticed through Promotion. Human resources Human resource is concerned with the whole range of activities to do with looking after the people that work within an organisation and those with whom the organisation comes into contact. In Cadbury, staff members are one of a business's most expensive and valuable assets. Human resource department plans the manpower needs of the business, recruits not just the people who work but for their qualifications, talent and well motivated; it is also responsible for Health and safety, training of staff and making staff record. Cadbury would use human resources because it is a very big organisation. ...read more.


A clear chart will show: * How the organisation is structured * The level of responsibility of each organisational member and whom each reports * Lines of communication * Possible lines of promotion Cadburys type of organisational structure is a tall structure because they have a narrow span of control and more levels of authority. Under the chief officers there are going to be the non - executives who will have people working for them. As you can see from above Mr. Sunderland controls the chief officers and he gets feed back from all four of the chief officers, then he is most likely to report back to the chairman. There are three lines of management there could be many more if the executives and the managers of each department are included. Tall structures are based on distinct chain of commands from Managing director to Clerical Support assistants (according to Cadbury). Decisions are made at the top and pass down. Such organisational are usually based on clearly defined procedures and roles. Flat structures do not have many layers, which it means that information is sent quickly; with less complication or misunderstanding; therefore it produces the correct result. Due to having a Flat structure communication is easier (clear information, understanding) between each layer, therefore when decisions are made, they will be specific to advice/order instructions. By Osman Bashir ...read more.

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