Business Studies Essay - Why Entrepreneurs Start a Business, Simba Chip Example

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  • Topic: Marketing, Human resources, Management
  • Pages : 5 (1863 words )
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  • Published : March 9, 2013
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Why do entrepreneurs start a business? Mainly, to make a profit and the South African company Simba, which produces a convenient snack, crispy chips, has so far done just that. They have become a booming business, expanding on their range of flavors for their chips. They have teamed up with Pepsi, and converted their food only company to a food and beverage supplier to many outlets throughout South Africa. Simba has become such a popular and well-known brand because the eight different functions within their business work so well when overlapping each other in the different tasks and activities that they have to complete. There are four different functions I will mention that apply to Simba and examples referring to the different functions. The different functions that will be mentioned are, the marketing function, the human resources function, the purchasing function as well as the administrative function.

The first function that I will mention is the marketing function. What the marketing function does is it leads to the sale of the product that the business it trying to sell. The Marketing function has to find a target market, which they will aim to sell their product to. Each Marketing aspect of every business will have what they call a marketing mix; it will always consist of four components. They come in no particular order, there is the promotion part, it is concentrated on promoting the business with publicity which is free promotion to the company, an example would be a positive article published in a newspaper or magazine, another way would be to have a sale promotion, where Simba has increase the size of their packet by 20% and more customers will buy the bigger looking size packet compared to the smaller packet at the same price. You are then looking at the price aspect; a consumer will only buy your product if it looks like they are going to get a better deal at the same or a lower price. After the price comes the place, the area in which Simba decides their product should be sold, if there is accessible parking, if the shop is located in what feels to be a secure and safe area people are more likely to purchase that product. The product is a convenience product; you are able to purchase a big bag of 125g chips and a small bag of 30g of chips, depending on what you require the product for. They have increased the size of the smaller bag to make the product look more appealing toward the consumers, and to make them think they are getting a better deal compared to Simba’s competitors.

All functions of a business are critical; a business will not survive without all eight of the functions and departments. The Human Resources (HR) environment is all concerened around the employee. An HR manager will concern him or herself with the employment of workers and their work ethic and their productivity. An HR manager will ensure that the individuals develop their full potential within the business environment. They overlook the time, skill and labour spent by a person to produce a certain product. In return for this the employees are paid a wage or salary, which is to be determined between the finance and HR managers. You will discover as an HR manager that if your employee is comfortable and satisfied within their working environment, they are more likely to be more productive. At the same time you will need to set down ground rules as some employees may take advantage of their comfortable and more lienient. If the production employees are more productive, they will affect the business all the way to the top. Therefore with productive employees your business will more likely achieve its objectives and fulfill its vision.

How do Simba and Human Resources relate? They pride themselves on the fact that they are a world wide company and they provide jobs and employment to over 153 000 employees. They have six elements within the Human Resources department and throughout the company, they have an incredibly powerful...
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