The Basic Functions Of A Business
June 17, 2022 | Business | No Comments
For every company, regardless of its business purpose and size, three essential basic functions can be defined. These functions are finance, marketing and production.
The characteristics may differ from one company to another, but you can find these in every business.
This function ensures that the required funds are available to the company and are distributed within the company.
This includes above all the procurement of funds for the maintenance of all corporate functions. In addition, it includes budgeting and financial planning of expenses, income, profits, receivables and liabilities as well as the documentation of all financial transactions.
From the point of view of this operational function, you can define the goal of a company as follows. The goal of a company is to achieve and increase profit in the long term.
Marketing ensures that the company has customers who buy the products and thus generate income. The prerequisite for this is that the products and services offered by the company meet the needs and wishes of the customers and that the customer is also aware of their existence.
Companies create marketing plans and implement measures to achieve these goals. Monitoring the success of these measures is also an important marketing task.
This corporate function includes all activities that a company requires to create products and services. It should be within the specifications of the finance function and the marketing function. The production also includes the management of the value chain, from the suppliers through the company’s own manufacturing functions to the customer.
It’s also important for an entrepreneur to be aware of these three basic functions and to ensure that they give each one the attention they need. For each aspect of the three basic functions, the entrepreneur must decide whether he wants to carry out the activity in question himself or delegate it to a service provider.
What are the basics of business administration?
Business administration not only includes aspects such as law, logistics, production, human resources management and corporate taxation. It also includes topics such as marketing, statistical and key figure evaluation as well as bookkeeping and accounting. The association administration members (vereinsverwaltung mitglieder) should check all these aspects to achieve profit in the long run.