The businesses objectives are drill down in a business plan to decide what functions are necessary to allow the business to achieve them and which ones are needed for the business to operate. The achievement of theses objectives would be carried out in these functions by the employees. The number of these employers will be decided within the plan. A business plan is all about planning how the business is going to work and finding routes for the businesses functions to achieve its aims and objectives. For example market research might find new ways to increase sale figures etc.
Sales function contributes to a business plan because it is how much the business needs to sell in order to survive break even, which is very important if the plan is being used to obtain additional finance. The plan is all about planning how the business is going to achieve its targets. So this needs to be considered this in each function. Finance department is one of the most important functions to the business and a business plan because it keeps track of all the inflows and out flows of the business, and the business plan needs to find routes in which this function need to achieve in order for the business to survive and grow. As well as decided how much of the business income will be spend on each function.
Because a business plan is all about planning out every area within a business and planning for worst case scenarios, the functional activities need to have a back up plan if thing went wrong. If the finance or production department slipped in progress then it would affect the rest of the business functions. As finance produced the income for all the other functions and production produces the products to make sales. Overall functional activities contribute to a business plan success in achieving the businesses aims and objectives. Because it drills down the functions by planning objectives for each individual and team, to reach the functions full potential.
Boots The Chemist plc has been a growing successful business over many years, with 1,500 stores in the UK and Irish Republic. As well as being the largest chemist retailer in Europe. It is a large health and beauty retailer within the UK and overseas. The business was founded by John Boot in 1892 as a small herbal remedies shop, and has expanded from then on. The company operates by working together as a whole, to achieve the businesses full potential. It has many functional activities that make the business so successful in achieving the businesses strategic aims and objectives. These are:
The business long and short term aims:
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To be the place for health and beauty customers. (To be the best)
- Build on there brands growing success internationally and sell value for money products to the mass market
- To secure market leadership in the UK and overseas,
- Maximize the values and sales of the company.
Boots functional activities are the most important part of the business, these are the different areas that operate separately and together to make sure that every area is running as effective as possible. These different functions are: Human resources, Finance, Administration, Production, Marketing and sales and Customer service.
These different functions are very important to Boots. Without them the business would not survive or exist. These different departments are what make the business operate, each one is as important as the rest, if either one slipped in progress it would have dramatic effects on all the other functions. As they are all linked in some way and interact together to overall achieve the business aims and objectives. The most important factor is the functional activities being involved with each other function, so that the company can be a whole.
On the one hand Boots functional activities all work to gather, to make the business operate as a whole they do this by interacting with each other. The marketing and sales function is seen as one of the most important functions within the Boots Company. The functions activities involve finding out what its customers wants and needs by doing market research and sales sells as many products as possible to its market. These functional activities have an impact the other departments, such as production. This function is told what products to make to satisfy its customer needs as well as how many to produce if orders are made. Customer service is told how to deal with customers when making sales, as well as how to treat its customers. As this is one of the wants of consumers to have good customer service. The greatest effect these functional activities of the marketing and sales department will have on Boots is helping to achieve the business aim of being the place for health and beauty, as this function dose in depth market research to identify what its market wants in the short term and long term, so that Boot the Chemist can offer it. As well as this function interacting with Production to produces products that its customers want and customer service department to make sure it offers a high standard of service. These all make consumers attracted to the store as they offer what the want, with high quality service available. So Boot the chemist can be the place for health and beauty. This will lead to Boots securing its market leadership by retaining customers and attracting them to their stores rather than their competitors, by offering what they need. On the other hand Boots functions operate separately to make sure that that area is running as effectively as possible. This is done by the administrators of each department. Administration is still a function of Boots but each department has one, so that it can be run better. The activities of the administration function involve cleaning, clerical work and other supporting activities to help that function operate to its full potential. This function works to gather with all the other departments to help Boots achieve all its aims and objectives. It dose this by making sure each function is operating at its best, which will lead to the company operating to its best so it can achieve all its goals. For example if marketing is working to it maximum potential, then it can find new way to make sales increase. This will help to achieve its aim of increasing sales. Which is the same if production is operating at its best; it will produce as many quality products as possible to help achieve its aim of selling value for money products to the mass market.
The finance functional activities work together with all the other functions, as it supplies the money each department needs to operate. For example production need money for materials to make products, pay suppliers etc. This function is another of Boots most important department as it manages all of the inflows and outflows of the business. This means that this function is the life of the business and if it did not interact with the other function it could result in the business not existing any more. Finance department gives each function a budget to spend up to and administration makes sure that they keep within their limit. Both these functions activities help the business to be the best as it allows the company to keep within its spending limits. If each function is keeping to its budget then the overall business will keep within its limits. To help the company effectively manage its finance. By retaining profits and using capital left over to invest in the business to develop and make it more successful.
Boots the chemist promotional function is within the marketing and sales department. This functions activity involves advertising the business and its products. By using the most appropriate type of media that the business can afford as well has catch the public’s attention. These functional activities help to achieve all of the business aims as it raises awareness of the Boots products and what the business has to offer. Such as special events and offers in store, this will attract consumers to the store which will help to increase sales. The promotional activities help its market to recognize the Boots logo and its brand so the company can build on its brands growing success world wide. As all the promotional activities attract consumers to the stores Boots has a better chance of increasing its market share as well as retaining its customers by giving them a promotional advantage card the business has on offer, so it can secure its market share which will lead to it being the place for health and beauty products.
The human resources functional activities work together with every single department as they involve employing and training good hardworking staff to fill the job roles in every department. For example if production needed machinery fixing then human resources would hire some one to take care of it. This department’s activities help to achieve the aim to be the place for health and beauty. Because Boots hires professional staff that are experience in that field for each department of the business to make sure tasks are done correctly. As well as all of the services that Boots has to offer each one has staff on hand to give professional free advice on its products. So this activity will make consumers shop at Boots store as they can get accurate advice as well as quality products and a range of services. This will lead to them taking consumers away from their competitors as they offer more in their stores, so they can secure their market share and increase their sales from this. So overall be the best.
Recommendations
Boots functional activities are very effective in achieving their business aims as they have many strategies within them that help them attract customers to their stores. But recently the business has experienced a slight fall in sales. This could be due to prices on their products being significantly high to most other business especially their competitor. Boots dose a lot of market research within its marketing and sales function to find out what its market wants, but in addition the company needs to consider doing more competitive research such as regular competitors SWOT analyses to find out the strengths and weaknesses that they have, such has low prices. So Boots can find strategies to compete such has special offer like BOGOF (buy on get one free). So the company can still retain their product prices but consumers get more for their money. This would overall attract more consumers and help to get the business sale figure back up, to help achieve their aims more effectively. Whether this happens depends upon how accurate and how much research the company dose.