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Functional Areas

Free essay example:

Simon Ho                            CJRB

GCSE Business CWK

Functional areas


  Every successful business or company such as Mac Donald, Orange etc must have some sort of function within the business, but the four main functional areas are Production, Marketing, HRM (human resource management) and Finance these all work together to make never ending  cycle. Job titles and roles in the organisation chart reflect the functions of different departments however each function has its own advantage and disadvantage. The advantages having functional areas are staff can become more experienced, opportunities for promotion and career development; on the other hand departments may become more competitive, rather than having aims of organisations as a whole on mind.

Within the functional areas there are different tasks which must be completed for the inevitable:

  • Serving customers
  • Buying raw materials
  • Pricing the product
  • Promoting the business
  • Recording customers payments
  • Business hygiene
  • Displaying Products

Organisations are structured in radically different ways ranging from relatively fixed structures with positions, rules, and established chains of communication to dynamic structures in which people belong to teams that are continually being formed and reformed for the duration of a project.

What is Production?

Production is also called manufacturing. Manufacturing is a branch in the business industry it’s the application of tools and a processing medium to the transformation of raw materials into finishing goods for sale, this effort includes all intermediate processes required for the production and integration of product’s components.

The business production group manages the business processes of the central administrative systems by maintaining production control, ensuring system availability and processing scheduled procedures. It also co-ordinates production schedules, automates business processes and works directly with developers and users to understand the support requirements for items moving to production, on the other hand, some manufacturing may involve significant social and environmental costs. The clean-up costs of hazardous waste, for example, may outweigh the benefits. Hazardous materials may expose workers to health risks.

What is HRM?

Human Resource Management is a group designed for a business premise, quality of furniture and equipment, and employee and employer attitudes affect the condition of health and safety at work. However HRM are not just based on recruitment and safety issues but they also concern on ideas and techniques developed in the organization to enhance and develop worker motivation, productivity and performance. The HRM emphasizes on:

1. The need to search for new ways of working

2. The central role of managers in promoting change

3. The treatment of workers as individuals rather than part of a collective workforce

4. The encouragement of workers to consider management as 'partners' rather than as opponents - 'us and us', rather than 'us and them'

The main goal of human resource management is to help an organization to meet strategic goals by attracting, and maintaining employees and also to manage them effectively. The basic premises of the academic theory of HRM is that humans are not machines, therefore we need to have an interdisciplinary examination of people in the workplace

What is Marketing?

A market focused organization first determines what its potential customer’s desire, and then builds the product or service. Marketing theory and practice is justified in the belief that customer use a product/service because they have a need, or because a product/service has a perceived benefit. Two major factors of marketing are the recruitment of new customers and the retention of relationships with existing customers. Once a Marketer has converted the prospective buyer, base management marketing takes over. The process for base management shifts the marketer to building a relationship, nurturing the links, enhancing the benefits that sold the buyer in the first place, and improving the product/service continuously to protect the business from competitive encroachments, this leads into the four p’s.

1. Product - Are the things that you sell to people. You might also have a service that they’ll pay for as your product.

2. Place - How to get the product to the customer.

3. Price - Prices are either too expensive or to cheap, very important to success.

4. Promotion - Show customers what product you have for sale.

In the marketing group there are actually eight p’s including: people, process, physical evidence and packaging but I am not going to go into detail.

What is Finance?

  Finance is the most encompassing of all business enterprises.  To understand finance you must know about the entire business, indeed the entire economy.  The Financial system (or the economy, your choice) is composed of consumers, manufacturers, distributors.  These groups need money to purchase products and services. One way of looking at Finance is that it is getting the money to purchase these goods and services. The Finance department deals with all the financial matters in the business. The modern finance or accountancy department has an extensive data processing system backed up by computers, the finance functions obtain information from other apartments, record useful information, work out payment wages, provides money needed to run business efficiently.

What is Purchasing?

  Although this function is not completely relevant to all businesses but this is still an important function in a business.

Purchasing management directs the flow of goods and services in a company and handles all data relating to contact with suppliers. Effective purchasing management requires knowledge of the supply chain, business and tax laws, invoice and inventory procedures, and transportation and logistics issues. Although a strong knowledge of the products and services to be purchased is essential, purchasing management professionals must also be able to plan, execute, and oversee purchasing strategies that are conducive to company profitability. Sourcing reliable suppliers is a crucial part of purchasing management. Purchasing managers, agents, and buyers usually learn about new products and services from Internet searches, trade shows, and conferences. They meet with potential suppliers in their plants whenever possible. Skills in foreign languages may be helpful for sourcing suppliers in other countries

Cadburys and Divine’s production

Both companies Cadburys and divine chocolate both have a successful production Cadbury is so far the clear leader in the UK chocolate confectionery market, with over 50 brands and over 1000 different types of chocolates being manufactured every minute it shows how many customers wants Cadburys despite this divine also produces chocolate but slower in process and is sure to make better quality chocolate,the harvest time is crucial if good quality beans are to be produced. If the pods are too ripe they are vulnerable to disease, or the beans might start to germinate. However, if the pods are too green the cocoa beans will be of very poor quality, because not enough of the 'aromatics' which produce the familiar cocoa flavor are produced. Furthermore Cadburys may be the leading brand in the UK but with so many bad comments including the salmonella and the worst crème egg, it shows that Cadburys goals have changed from Quality of chocolates to the quantity of chocolates, although the chocolate quality have dropped, people still buy the chocolate because it’s the most popular brand on the other hand Divine sells chocolates but on different occasions which helps fair trade. Both companies use cocoa beans from different sectors of Africa and they both transform raw materials (cocoa beans) into finishing products like chocolate and even drinks but Divines chocolates takes more care and responsibilities of their chocolate.

Cadburys and Divine’s HRM

Cadburys and Divine chocolate both have the same goals helping to preserve the future of our planet and is an essential part of living our values. We are determined to play our role in the battle against climate change by working to minimise our environmental impacts in energy use and carbon dioxide emissions. We are also focused on the need to treat water as a precious resource and are working to reduce our water usage.

Cadburys has improving their safety performances to one of their top management priorities across the business. They have developed additional programs to improve the safety performance and are reviewing and monitoring the performance more closely than ever before. They said “goal is to embed a zero accident culture” as for Divine they included a guarantee, secure minimum price for the cocoa, an extra social premium payment, long term trading contracts, decent health and safety conditions and a commitment to support for community programmes aimed at empowering farmers to increase their abilities to be self sufficient.

  Both Cadburys have many employers but Divines has fewer employers for different reasons, Cadburys is one of the UK’s most popular employers with a wide variety of career opportunities said on their website even though it could just be biased but their success relies on people. Cadbury Schweppes has a strong heritage in the way it respects its people and its social responsibilities. We employ over 50,000 people in over 60 countries around the world; we have 160 people around the world in our executive management team, currently women constitute 33% of our global workforce, 33% of our managers and 13% of our executive management team, global staff turn-over is generally low: between 2% and 5% per annum, although Cadburys has many more employers than Divine, the reason is because since the company is for fair-trade and limited they cannot offer enough wages for too many employers because nearly half of the amount of money goes to fair-trade.

Cadburys and Divine’s Marketing

  The 'glass and a half ', corporate purple and flowing script has become synonymous with Cadbury: these design elements have been used to great effect in developing the connotation of goodness that this imagery suggests. In the 1980s another vital attribute - taste - was highlighted. Regardless of national preferences about how chocolate should taste the implication was clear - Cadbury offers taste and texture that appeals to all. In the 1990s further emphasis was placed on 'taste'. The strap line 'Chocolate is Cadbury', which was built upon previous brand values and allowed Cadbury to stake its claim and taking ownership of the word 'chocolate' and the chocolate eating experience with additional advertisement during Coronation streets moved the marketing business to a new level but Divine never really advertised much except during comic relief breaks every year but chocolate in the present day are the same price chocolate bars are usually between 30p- 60p an average sized chocolate bar and its very appealing to adults and to children. Since Cadburys is a world wide chocolate brand the places for Cadburys to place and sell chocolate is very optional since many people recognise the brand but since Divine isn’t as popular as Cadburys they would have to find a place where people love chocolate and they could even try lowering the price but doing that could cause further problems towards the company.image00.jpgimage01.jpg

Cadburys and Divine’s Finance

 Both Cadburys and divine Spend only 20% and below on all equipment for chocolate (not including cocoa)  their objectives are to generate consistently superior business performance through focusing our investments and efforts behind those businesses and brands which are capable of generating the highest growth and returns. It is therefore pleasing to report that the acceleration in revenue growth we have seen in 2005 was broadly based across markets and categories. All four regions contributed strongly to growth with both Americas Confectionery and Asia Pacific showing growth well ahead of the Group's average. Both confectionery and beverages reported strong revenue growth. Both companies only spend up to 50% on wages and the other on the chocolate research; I believe Finance could maybe one of the most important functions since if with out the function wages, Ghana farmers and even the company itself could lead into disaster.


 I believe that every function in Cadburys and Divine are very important since losing EVEN one function can lead the company downhill and even bankrupt.  The Divine Company’s overall strategic have indeed improved the livelihood of small holder cocoa producers in West Africa and increased their value of chocolate sold but on the other hand ever since the problem Cadburys had with high chocolate sector (salmonella) their goals has changed and there business has raised awareness but still the quality of chocolate dropping although chocolate buyers has increased.

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