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Unit 1 Section 2 (Functional Areas)

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Part One What is meant by functional areas of a business? Functional areas are all different. They are each department in a business and they all consist of different things. These include; finance, admin and It support, human resources (also known as personal department), operations, marketing and sales, customer services and research and development. Organisation charts shows the order of importance within the company. An example of this is in my school where the head teacher is at the top and then the deputy head below him and so on. In organisation charts they show levels of authority within a business. The most powerful person will be at the top and the person with the least amount of authority will be at the bottom. Usually in big business the chairperson of the board of directors will sit at the top of the organisation chart/hierarchy. The chairperson will help decide on the policies of the business with his fellow directors, who are elected by the shareholders to help run the company. The managing director would be in charge of the day to day running of the business to see if it is working efficiently and to re-lay information back to the chairperson. In some companies the managing director will be called the chief executive. There are five people with equal authority that will come next in a business, these being; the production manager, the marketing director, the sales manager, the personnel manger and the financial director. The marketing director and the financial director both have a seat in the board of directors hence their titles. In different types of business that sell different products or provide different services all have different names for these people, this is what they would be called in a stereotypical business. The more people within a business the longer the chains of command become. For example in a big business like Amstrad there would be very long chains of command with Mr. ...read more.


This is because excellent customer service is needed at all times in all of the Richer Sounds stores. They make sure that their staff are trained well enough and check that they can help customer's needs whatever the situation is. They look after a call centre to make sure that the customers are happy with their goods they have bought or if they have problems with their good customer service is their on the end of the phone to help. The last thing they look after is a service and repairs sections were they are able to help customers with faulty goods or service their goods, for example if a customer has a problem with his new television he has just bought they will be able to work out what the problem is, fix it or replace it. Here is a list of what the customer service department takes care of overall; knowledgeable and friendly staff, a national call centre, a corporate sales section, mail order and web sales, a dedicated order line for free catalogues, specialist customer service staff, a dedicated service and repairs section, well laid out, welcoming stores with easy access, demonstration rooms pets welcome policy, competitive prices, 100% satisfaction guaranteed or money back, brand new products by known manufacturers, full access to technical back-up and spare parts, computerised stock control system, web access in stores. Purchasing, Warehousing and Distributing The responsibilities of the purchasing department of Richer Sounds are; ordering all the stock, to maintain good relations with the customers, chasing late deliveries with the suppliers, informing the supplies with any discrepancies or delays with deliveries, deciding the selling prices of the goods, checking the stores competition checklists, monitoring stock levels and advising on special deals which could be made in the future. After the purchasing department have ordered the items it then gets delivered to the warehousing department. This is where the goods will be stocked until they are needed to be delivered to the shops when the stores need them. ...read more.


The disadvantages of this are the time it takes to type up and to hand out to the staff and how time consuming it is. Intranet - intranet is an online bulletin board that allows different functional areas to view each other progress and communicate effectively within the business. Some examples of this are in a school they would have a network of computers connected together with logins and passwords to access personal information and documents. This is mainly uses internally because it is used in the computers around the business. Intranet is a network of computers linked together for many people within the business to look at. Sometimes it is not very efficient because people may be busy and not have time to look at the bulletins being placed on the intranet, so it is not very efficient in that sense. Richer Sounds use intranet to show their new designs to the other staff, this will give them positive feedback about how it is good and how it can be improved. Telephone - telephones are used for internal and external communication. This is used to directly contact somebody on an urgent matter, if you have to talk to someone quickly to remind them or inform them a.s.a.p. This is good for communicating efficiently as there will be no mistakes being made and the emotion in your voice is shown, for example sarcasm will be shown as it won't be in e-mails. It may be become a disadvantage if you want to contact many people saying the same thing, there is a lot of people missing calls due to meetings and other important matters therefore may take long to communicate with a lot of people. This is were an email is better because you could send an email to many recipients and this will be a more efficient way of communicating. The telephone will be frequently used in businesses such as Richer Sounds. ?? ?? ?? ?? GCSE Applied Business Harry Sandford 1 ...read more.

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