M1: Explain how oral communication can be used in business situation

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Farah Jabeen

Unit 1:

Task 4: Functional areas

Introduction:

All the businesses have their own way of structuring the functions (departments) or the tasks that they need to carry out. The tasks need to be done regularly e.g. buying stock, bills must be paid on time, customers have to be served and if customers have enquiries then they must be answered. Each business has a key function which is run by staff members.  In the medium/ large business people specialise in different tasks and in the small businesses it will be carried by one or a few people.  It is very important that the different functional areas work together very well. It is because most aspects of a businesses activities will involve different functional areas.

Function:

Function means departments and most business have a number of different departments. Each department has a specific job or a task to do, which is called ‘functions’.  Businesses have many tasks which they need to do if they want to succeed.

The main key functions in business are:

  • Administration – This department is a support function that carries out a different range of tasks. The usual responsibilities of this function are photo copying, opening the main, preparing and filing documents, faxes and also sending emails. This department also deals with producing up to date reports processed on computer, clerical duties, deals with aspect of software support, security and health and safety. If they develop poor administration work then it can affect the company's image and reputation. In administration every thing should run smoothly so the managers can concentrate on their job and on the task of running the business. In the big businesses administration is carried out in every department, rather than one department.

  • Customer service – This department is very important because it solves the customers and clients enquiries and complaints. Every customer has high expectations.  When a customer contacts a business they expect the employees to be polite, respectful and knowledgeable. This service helps the customer before and after a sale has been made by providing information, giving advice, credit facilities, delivering goods etc. Every business has a trained staff which can handle enquiries and complaints in a polite and professional manner.

  • Distribution – This means ensuring the goods are delivered to the right place on time. Most businesses might deliver goods to customer’s homes, it’s mainly when you buy products online .e.g. Argos delivers things that you buy from them on their website, to your home.  The superstores may have their own special vehicles, which they might use. They also have to plan the vehicle routes to avoid back tracking and this saves them money because it keeps the fuel costs down and it also saves time. It can be complicated most times because you have many vehicles, with different load. Most of it is urgent and some are not.
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  • Finance – This department is most important because it shows the business if they are making profit or loss and highlights the earning and spending of the business. The department keeps a record of the money which is coming into the business and which is leaving the business. The records allow the business to track financial data and assist in controlling its spending cost and income levels. In most large businesses, there are different types of financial experts which are employed such as management accountants, financial accountants and credit controllers. The management accountants prepare cash flow forecasts and ...

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