Functional Areas of Business
September 3, 2013
Analyzing the functional areas of Management
In all types of businesses (big or small), managers play a key role in the efficiency, profitability, and functionality of how the business meets its goals and successes. The purpose of managers are to oversee and coordinate the work of others. As managers, it is important that ensure that the business’ greatest resource, which are its employees, are used effectively.
There are several functional areas within business that managers play a role in one way or another. These functional areas are business law, human resource management, leadership, accounting, finance, economics, research …show more content…
Managers use economics to increase profits within their market conditions by studying the consumption, production, and distribution of their service or product. Economics can also provide valuable information to managers when economies become unstable or are experiencing a recession, or when seeking to venture into a new market.
Research and statistics are valuable resources for a business. To stay competitive and profitable, businesses continually must conduct research to meet consumer demand. Research is also vital for a business who wants to expand its services or products. The raw data gathered from the research can be interpreted using a variety of statistical methods. The information extracted from the research and statistical data assist managers in deciding what business processes are useful and maintaining goals, and what processes may need to be modified or dismissed.
The manager’s role in operations management is to ensure that the goods or service are getting to the customer efficiently and cost effectively. It is important the supply chain runs effortlessly to meet the customer demand changes. Managers must also be able to anticipate and forecast demand changes in profits to determine when new equipment or facilities are necessary to maintain or increase profits and customer satisfaction.
All businesses use some type of