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Business entities are not the same. Some provide owners a lot of flexibility in
management and control and some do not. Some provide owners a significant degree of
protection from liability and some do not. Some are heavily regulated, and some are
not. On top of these differences is the fact that our friendly tax code provides different
tax treatments for different business entities. All of these factors should be considered
when an entrepreneur is selecting the type of business entity she wishes to use for her
business.
BUSINESS FUNCTIONS CHART
The following diagram gives most of the main functions to start a business.
Some companies will not have all the functions listed, for example service
and finance companies will not normally have research and production
departments.
PRODUCING
Production is the creation of goods and services with the help of certain processes. The
production of goods depends essentially on the organisation of men, money, materials,
and facilities into a smoothly operating business. In modern organisations, production is
highly organised, mechanized, and specialised mass production, and, therefore, its
overall charge is entrusted to the Production Manager.
A production manager has four basic responsibilities in this regard : (i) to ensure the
production of goods and services in specified quantities, (ii) to meet the specified time
schedule or delivery dates, (iii) to fulfill the quantity requirements, and (iv) to perform all
production operations at the minimum cost.
Distribution/Logistics
Manages all the supply chain processes from raw materials to where the end
product is used. Coordinates supply, distribution & storage of goods. Manages
transport & distribution centres including drivers & warehouse staff.
Marketing
Marketing is the process of getting goods and services into the hands of the
consumer with a view to satisfying the needs and desires of consumers and
producers. In other words, the marketing function creates a process through
which producers and consumers are brought together in an exchange relationship
and transfer of ownership takes place.
For this, the marketing manager must make judicious decisions regarding 4 Ps: (i)
product (decisions about new product development, packaging, branding, etc.);
(ii) physical distribution (decisions about marketing channels, and policies and
procedures relating to warehousing, transportation, etc.); (iii) promotion
(involving advertising, salesmanship, sales promotion, and publicity); and (iv)
pricing (policies and procedures relating to the setting up of profitable prices).
Sales
Demonstrates & presents products to customers. Manages budgets. Learns about
new products. Makes sure that the product meets the customers requirements.
Writes tenders & proposals.
Finance function:
Finance function of business is basically responsible for three decisions and their
proper implementation, viz., (i) investment decisions (financial planning, capital
budgeting, etc.) (ii) Financial decisions (capital structurefixed and working;
short and long-term and (iii) dividend decisions.
Provides the information required for the financial protection & planning of
companies. Prepares accounting records & management information.
Computing
Designs, implements & maintains computer systems to meet requirements of
users. Provides computing support for staff. Maintains databases & networks.
The HR function deals with the human side of business. It is concerned with
increasing the effectiveness of human performance in any organisation.
Specifically stated, the HR function aims at obtaining arid maintaining a capable
and effective workforce, motivating the employees individually and in groups to
contribute their maximum to the fulfilment of organisational goals.
Recruits & selects new staff. Involved with contracts of employment, job
descriptions, training, management development, industrial relations &
disciplinary matters.
Information function:
Thus, information cell acts as a storehouse of valuable information and real brain
behind every activity of a business concern. The responsibility of performing this
function should be entrusted to the information manager in the organisation
because information function is a specialist function requiring an expert
knowledge and technical skill in this area of the operation. The scope of
information function in a modern business is very wide.
The information manager is generally burdened with the following three broad
functions: (i) information function (receiving and collecting, recording and
preserving, arranging and analysing, and providing information); (ii) operational
function (such as systems and procedures, records management, etc.); and (iii)
public relations function.
6. Innovation:
Here in terms of new product development we are talking about Research and
Development. In this age of increasing rivalry among competing firms, the
importance of innovation is hardly exaggerating. Normally businesses innovate
through product or process.
Innovation often is stimulated by creative thinking on the part of people who are
willing to think 'outside the box'.
Buying/Purchasing
Locates & maintains relationships with suppliers, of products. Negotiates prices,
delivery dates & product specifications. Works with managers to anticipate future
demands.
EXTERNAL SERVICES
Chartered Accountants
Visits clients as part of an audit team; reviews their business operations &
financial records to establish the validity of the company's accounts. Advises on
tax liability & other matters.
Management Consultants
Identifies & investigates, problems concerned with policy, organisation,
procedures & methods of organisations. Recommends appropriate action & helps
to implement this.
Recruitment Agency
Matches job-seekers with employers' vacancies. Assesses candidates' skills &
employers' requirements.
Advertising
Liaises with & advises clients on all aspects of marketing communications;
presents proposals to clients; manages advertising spend budget; keeps clients
up-to-date on their own & competitors activities.
Market Research
This can be done by the marketing department inside a company, or by an
external market research agency. Plans market research projects on behalf of the
client. Analyses the problem. Drafts proposals. Prepares questionnaires & survey
methods. Briefs interviewers. Analyses data & presents it to client. Prepares
reports.
Public Relations
All aspects of media & public relations for clients: e.g. corporate brochures &
exhibition stands. Answers enquiries. Prepares press releases, organises press
briefings, conferences & PR campanies.
A standard procedure is followed for tackling such problems. These decisions are taken
generally by lower level managers. Decisions of this type may pertain to e.g. purchase of
raw material, granting leave to an employee and supply of goods and implements to the
employees, etc. Non-programmed decisions relate to difficult situations for which there
is no easy solution.
Sometimes these decisions may affect functioning of the organisation also. For example,
if an executive leaves the organisation, it may affect the organisation. The authority of
taking organizational decisions may be delegated, whereas personal decisions cannot be
delegated.
1. Know all the facts regarding your company. Gather all of the facts and necessary
information that impacts your business. This is important, because you do not want to
miss critical information that could make a difference in how you run your business.
Also, by being part of the information-gathering process, you can eliminate biases or
opinions others may have.
For example, understanding how your competition is doing business is very important.
Finding ways to improve customer satisfaction is another example of knowing the facts
of your company. A business owner can talk to their employees and customers to get
the necessary information regarding certain business operations. It is also important to
read all of your important business reports and keep abreast on the media coverage of
your business. These are just a few of things a business owner should know about his or
her company.
2. Focus on the results. Think about what you want and consider the possible outcomes
of your decision. A person needs to focus on the short-term and long-terms goals
regarding every aspect of their company. For example, keeping up to date on the
companys financial statements is very important. Keeping abreast on your employees
morale is another example on determining the direction of your company. Looking for
ways on improving how your company does business will go a long way in accomplishing
your business goals and mission statements.
3. Ask around. It is important to consider other viewpoints other than your own, so get
advice from your friends and business peers.
For example, a good technique is to talk to your important business colleagues and
managers to get their opinion on how to manage your business. For instance, you have
to make a decision on which client should manage your marketing campaign. Ask your
business advisors and other managers on what they think who would be the best fit in
managing your campaign.
In addition, a business person can join a local business support group to network with
other professionals in the field. This is a great way to get valuable information regarding
your industry.
4. Relax. Do not try to do everything all at once and when things get hectic stop what
you're doing and take a 10 minute break. Take a few deep breaths and try to do
something that will make you feel more relaxed such as taking a 10-minute walk,
listening to the radio or doing some stretching exercises to help de-stress. You will feel
better and gain a fresh perspective on your current situation, whether it is dealing with
your employees, giving a presentation or improving your companys marketing plan.
5. Stay the course. Managing your own business involves a series of ongoing business
decisions. Dont put off important decisions, and dont worry about your past mistakes --
just keep focusing on what is best for your company. To determine the best outcome for
your business, always listen to your customer needs and have your finances and
expenses organized. Customer satisfaction and making sure your company doesnt run
out of money are some of the important priorities of any business. If your business is
going in the wrong direction then you need to re-evaluate how you run your business.
6. Learn from your mistakes and re-evaluate. If you make an incorrect business then the
next step is to learn from your mistakes and go from there. Learn what you did right and
learn what you did wrong.
For example, your company decides on a marketing plan for a certain product, however
you dont get the expected results in terms of sales and customer satisfaction. When
this happens, learn what went wrong and use this knowledge the next time you market
your other products.
Business idea generation and opportunity analysis are the foundation building block for
launching a new business or venture. The origin of a business idea and the analysis of
the opportunity needed to build and grow such idea into a business structure is one
necessary marriage in entrepreneurship.
The process of generating business idea could be learn and developed. This is a unique
quality that an entrepreneur need to develop if he wants to generate business ideas that
would later become a business structure.
Ideation is also critical to the design and marketing of new products, marketing strategy,
and to the creation of effective advertising copy. In new product development, for
example, idea generation is a key component of the front end of the process, often
called the fuzzy front end and recognized as one of the highest leverage points for a
company.
A road map that can infuse new energy, enthusiasm and vision into your company's
growth plans.
Step 1: Focus on your core product. A very successful e-newsletter entrepreneur has
built his business around this mantra: "Prospects buy when they trust your value is
applicable to them and believe your company is stable."
Step 2: Keep your pitch simple. The last time you asked someone at a party what their
company does, did you get a clear, concise response?
What every company needs is a simple "elevator pitch." That's a short, concise message
that can communicate your message to a prospect in 30 seconds or less. It explains the
value your product or service provides so the prospect understands why it's applicable
to them.
Step 3: Stay true to who you are. Knowing who you are and what gets you excited (and
bores you to tears) will help you reach your goals.
Step 4: Map it. Mapping your capabilities with your target clients' needs is an excellent
way for you to determine your service strategy.
Step 5: Utilize marketing tools that work best for you. When deciding on a marketing
strategy, implement one that fits your personality and the customers you serve.
Establish goals that can be reviewed at three and six months. At incremental points
within each three-month period, keep checking your plan to see if you're meeting your
goals.
Step 7: Exercise the plan. This final step is really straightforward: Just do it: Complete the
daily actions, and then do something extra to accelerate your success plan.
Business plans are critical to the success of any new venture. I believe that
entrepreneurs should dedicate time to create them, regardless if youre searching for
investors. Business plans serve as the framework for your company and provide
benchmarks to see if youre reaching your goals. In my experience, they are key to
helping you think through your business and keep you on track.
Market analysis that discusses the market to enter, competitors, where you fit,
and what type of market share you believe you can secure;
An organization can have many different managers, across many different titles,
authority levels, and levels of the management hierarchy.
Hierarchy
Any group of objects ranked so that every one but the topmost is subordinate to a
specified one above it.
manager
A person whose job is to manage something, such as a business, a restaurant, or a
sports team.
Top-level managers are responsible for controlling and overseeing the entire
organization.
Middle-level managers are responsible for executing organizational plans which comply
with the company's policies. These managers act at an intermediary between top-level
management and low-level management.
General managers, branch managers, and department managers are all examples of
middle-level managers. They are accountable to the top management for their
department's function.
Low-level managers
Supervisors, section leads, and foremen are examples of low-level management titles.
Also referred to as first-level managers, low-level managers are role models for
employees.
Low-level managers usually have the responsibility of:
Planning
Managers plan by deciding what to accomplish. During the planning process,
management lays out what goals to achieve. Besides deciding what to strive for, leaders
decide how to accomplish goals. Planning is the first step in the management process.
Goals can be for a department, a division, the entire company or for an individual
product. For example, it may be the goal of a retail store manager to increase customer
loyalty by 15 percent in one year's time. In some cases, managers may decide on goals
for their employees' development.
During planning, managers decide how to fit all the pieces of that "big picture" together.
Organizing
Organizing is the management function that entails gathering resources. Once a plan is
in place, managers need to structure a way to accomplish their goals. Leaders arrange
human and material resources according to how they plan to achieve their objectives. If
the objectives are to increase employee job satisfaction and decrease turnover,
managers might hire outside help from consultants. They could also schedule more
training sessions on job tasks, responsibilities and technical knowledge. This could mean
leaders will have to reach out to the company's trainers, mentors and specialists
Leading
Leading is about communicating the plan to employees and advising them along the
way. Managers try to motivate those who perform the tasks that are necessary to
achieve their goals. The leading function isn't so much about telling employees what to
do but why it needs done. When they lead, managers build relationships by answering
questions, addressing concerns and showing positive enthusiasm. Leaders often can't
carry out their planned objectives alone and need to instill a sense of teamwork and
harmony.
Controlling
Controlling is about measuring performance results against planned objectives. In other
words, did the employees and the company accomplish what they wanted to? If actual
performance fell short of management's goals, what can be done to correct it?
Controlling isn't always a reactive function, as managers may intervene while employees
are carrying out the plan. Intervention may be necessary if actual performance is too far
off track. Managers may revise or tweak goals and objectives. They may also use
performance results to plan future goals.