Functional areas of a business

Authors Avatar

Omobolanle Salami                29/05/2009                

Assignment No. 04                

BTEC First Diploma in Business

Unit 1 Exploring Business Purposes


In this Assignment I want to describe the functional areas and their main purposes within business organisation, explain the interaction of functional areas and how they relate to each other in 2 selected businesses and I will also evaluate how the functional areas contributes to the aims and objectives of the two selected businesses.

Task 1

The main internal functional areas of businesses:

Finance - the department is responsible for taking care of the budgets for the individual retail outlets this is to ensure that they aren't over spending. They keep financial records of all of their payments which they have made to their suppliers, also the payments that the customers have made to them from their customers. This function is used also to chase up late payment of invoices this is so the company do not find their selves in debt. This area also provides their directors with accounts for example profit and loss accounts and balance accounts. This helps the company to evaluate their performance over the year and also to make comparisons with performances from previous years to make the company run more efficiently and set targets for the future. Some finance groups take care of salaries and staff wages these are sent to individual employees bank accounts.

Administration - This function is responsible for the everyday paper work. These include dealing with letters from their customers and suppliers. This department also deal with all the telephone and email enquiries from external sources such as customers for example.

Join now!

Research and development - the employees at the company are responsible for this function. Employees are always taking part in external training courses to identify efficient working practise. The research and development function is also responsible for researching and developing different services. The functional areas work together by holding regular meeting at either shop level at head office to give feedback to each other. They feel that good communication both internal and external help the company to run more smoothly and efficiently.

Human Resources - the responsibility of HR is a key feature in the strengthening of the administrations ...

This is a preview of the whole essay