ANATOMY OF A BUSINESS

What is the purpose of a Business? A business sells a product (anything from a pizza to an automobile) or delivers a service (sending packages, giving massages, or catering a party) and if things are working properly makes a profit All businesses use some combination of labor, e!uipment, and materials to produce products or services A business of any substantial size has to be divided into departments, each with its own "ob to do #or e$ample, one department may control the company finances, another may handle marketing, and still another may take care of sales %he "ob of a manager is to run his or her department so that it makes its contribution to the entire company %&' (A)%* +# A B,*-.'**/ #inance Accounting +perations 0arketing *ales 0anagement -nformation *ystems (0-*) *upport #unctions #-.A.1'/ %he finance department makes sure that the company has the money it needs in order to operate, this includes the money to buy a property, or lease an office or equipment, purc ase ra! material and pay employees" #inance helps the other departments in the company do their bu#$ets and consolidates them into one company budget -n large companies, finance includes the treasury function which manages the company2s cash and deals with banks %he people who work in finance and treasury are financial analysts" A11+,.%-.3/ %he accounting department keeps the company2s financial recor#s by trac%in$ sales, e&penses an# receipts, an# #isbursements of cas " Accounting also calculates t e ta&es (federal, state, local and foreign ta$ payments) that the company owes %he accounts recei'able department tracks money t at is o!e# to t e company or sales made on credit T e accounts payable department makes sure that the company pays its bills to suppliers %he payroll #epartment tracks employee(s !a$es an# salaries" A company may e$tend credit to a customer with a good payment record which allows the customer a certain e$tended period of time (monthly installments, or 45 days to pay the bill) 1ustomers who are denied credit usually must pay )O* (cash on delivery) %hese decisions are taken by the credit department, (also inside de accounting department) %he accounting department is staffed (people working in this department ) are usually accountants +(')A%-+.*/ -n a company that produces products from raw materials or parts and components made by another manufacturer or both and sells it, or a *ervice organization (delivers a service such as meals (restaurants) transportation (bus lines and trucking companies) or hotel accommodations (hospitality services), the operation department refers to the area that actually creates and delivers the product or service -t also includes departments such as S ippin$ an# +ecei'in$/ where the company ships products to its customers and receives materials from its suppliers T e purc asin$ #epartment/ buys the company2s materials and supplies to make the product +peration is often called the (roduction 6epartment -n a service organization/ (one that sells services such as a bank) operation includes the employees who serve the customers and the places where they work +perations also includes Bac%,Office functions or activities that the customers don2t see but that relate to customer transactions( for e$ample in a bank, when someone writes a check, this check follows a series of steps before it is deposited into someone else2s account and deducted from yours, this process is a function of the back7office)

%he operations department has three ob-ecti'es/ a) .ro#ucti'ity (how many products can one employee do per hour) b) )ost /how much does it cost to make the product) c) 0uality /assuring the correct form and function of the finished product) 0A)8'%-.3/ %his department prepares strate$ies, plans, pro$rams and messa$es that get the word of a company(s pro#ucts an# ser'ices and the benefits they #eli'er out to customers and potentials customers ((rospects) Mar%etin$(s %ey -ob is to elp t e salespeople sell" %he marketing department also includes mar%et researc , which studies customers an# prospects to learn about their nee#s, moti'ations, an# buyin$ be a'ior (for e$ample the age and educational level of the potential buyer) 0arketing also includes .ro#uct #e'elopment (for e$ample a faster and more powerful hairdryer, this would be a need in a beauty shop) %his department also includes .ublic +elations or )orporate )ommunications, which prepares !ritten material on t e company an# its pro#ucts *A9'*/ %he sales department includes the men and women who sell the company2s products or services *alespeople may work on t e telep one, in person or bot " %hey may sell to distributors or retailers who re7sell the product %hey may sell directly to customers: they may sell to individuals or to businesses *alespeople persuade customers to buy the product *ale also includes )ustomer Ser'ice/ after a sale is made customer service works with the company2s customer to maintain a lin% bet!een t e company an# t e customer and to answer customer !uestions, resolve complaints, and provide guarantees, and for some products they will provide instructions for proper use of the product, they must achieve )ustomer 1oyalty 0-*/ 6efines the company2s re!uirements for computers, software, and related items, purchases, installs programs and maintains them to function properly %hey use the system to produce reports to managers of other departments with the information they re!uire ()emember competitive advantage (fre!uent flyers miles) *,((+)% #,.1%-+.*/ includes/ a) &uman )esources b) 9egal department c) -nvestors relations d) #acilities management