Business Unit 1 - Functional Areas Within Business

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Section B:

Functional Areas within Business


Key Functions:

        All businesses need to be well organised to achieve their aims and objectives. Certain functions must be done regularly and these are usually grouped into specific types of activities. Unless all the key functions are carried out, the business will not operate efficiently.

        Key functions are split up into seven functional areas. Each has a specific purpose.


        Human Resources- Relates to people who work for the organisation. This department deals with the working conditions and training needed for the staff at Sainsbury’s. They are in control of providing all staff with a safe working environment. They decide whether individuals get promotions or bonuses for the work they have done all year. You would contact the human resources department of a business if you are applying for a job. They would be in charge of organising staff training days.


        Finance- Responsible for checking the money going in and out of a business. If there are problems, action must be taken swiftly. Computers and IT mean that financial transactions can be recorded immediately and analysed. They prepare accounts, pay wages and salaries to staff and obtain capital and resources. They prepare accounts by making sure every single bit of money is accounted for in receipts and they also make sure that, suppliers and employees get paid.

        Administration and IT support- All businesses receive information daily in many different ways. This must be dealt with quickly so that customers and suppliers get prompt responses. Each business also generates its own paperwork which must be stored safely in case it is needed again. Computers are an essential part of any business as they are used for many administrative tasks. This is essential for the business because computers are needed to communicate within the business and if they are not working then IT support will repair this problem quickly and efficiently so that business can continue as normal. They are responsible for clerical work, cleaning and maintenance, health and safety, security and support for software applications, electronic communications and electronic transaction.

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        Operations- Responsible for producing goods and services by making the best of resources. In a business providing a service, the operations manager is responsible for making sure everything runs smoothly. They are in charge of finding raw materials, equipment, like computers and office supplies and they are also in charge of finding new areas to build new stores. They obtain resources and organise them.

        Marketing and Sales- Responsible for making sure customers know about the business. This may include market research, advertising and sales promotions, the creation and development of a website or web store. The sales ...

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