A). Functional areas are mainly used in large businesses, because they usually work in departments, each department work using the functional areas that relate to it’s particular area. They are mainly used to ensure that business activities are carried out efficiently and are need if a business is to achieve it’s aims and objectives. The main functional areas in a business are: • Production
• Research and development
• Customer service
• Human Resources
In task 3 I will be explaining how 4 functional areas have a role in the aims and objectives of Tesco. Tesco is a business that always wants to make profit as an aim. The marketing department will go out and see what consumers are looking for, it might be child toys or adult electronics, and then the sales department will go and increase prices or sell more of the products.
Profit can link to the functional area: finance. To be able increase the profit companies have to try and keep costs(outflow) low, so the finance are monitors and supports aims and objectives trying to lower costs. If the finance department pulls through, just like sales and marketing, they should improve their profits.
Human resources in Tesco
The fact that Tesco is so big, they are constantly employing staff: managers, till workers and cleaners are being employed every day. Tesco need to provide staff courses and training to achieve the target of having trained workers, and perfect customer service. This is where human resources come in action. That department is involved with the running of staff training activities, and they continue to support the development of all staff.
Customer Service in Tesco
In order to achieve aims such as keeping their loyal customers, Tesco have to be able to deal with their consumers and their problems effectively. Customer Service is one group that specializes in dealing with enquiries, problems, concerns and complaints positively, so as not to loose customers to other marketing competitors, which is why customer service also links with Tesco’s aim: be the best out of all their competitors. All big companies that wish to succeed in their chosen businesses have to take into consideration, functional areas. They make things easy for organisations.
To ensure that a Tesco reaches all it’s aims and objectives using it’s functional areas, the functional areas often have to interact with each other. A business cannot run with isolated functional areas. Every department needs information and support from each other, if the operation to work effectively, meaning that constant communication is needed for a business to achieve aims and objectives.
Finance in Tesco
c). For Tesco to become the biggest company in their specific market area, the management have to choose the right resources. Finance will only spend money if they are sure that Tesco will make profit from their invest and sales will only organize a promotion if they are to attract many buyers. Tesco have to make sure that their suppliers are top quality or they will have unhappy customers who will go to rival shops and that’s bad for their aim to outshine their rivals. So production makes sure that whatever they buy is what it says on the label. Human resources will organize training for staff like shop managers, who can make decisions that can make or loose a Tesco store’s profit. The training has to come from the right resources because only then will there be perfectly trained staff. The working area finance will see how much money they can spend, and then they will give it to the marketing department, who go out and see what consumers is looking for.e.g. What price, what product, how popular? Once the marketing area has gathered enough information that is needed, they will pass it on to the finance sector. The Finance sector looks for the cheapest ways...
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