Key ares of the business- Success components of a business
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Major Functions of a Business. Dr.Premasiri Gamage [email protected] Chairman Business Development Centre
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Its describes Main success components of a business.
Transcript of Key ares of the business- Success components of a business
Production/Operation
Input Process Output
Marketing
Place
Price
Product
Financial
Financial
Cash Flow
Balance Sheet
Profit and
Loss Ac
Trading Ac
Human Resource Development
HRM
Recruitment
Rewarding
Training
Selection
Four vital functions.
1. Production/ Operation.
2. Marketing.
3. Finance.
4. Human Resources. (Personnel)
Four vital functions continued..Production/Operation.
Marketing. Finance.Human
Resource
Resource Identification.
Planning the Time.
Store Management.
Quality Control.
Delivery of products.
Production Targets & Deadlines.
Market Research.
Test Marketing.
Packaging.
Advertising
4 Ps of Marketing
Source Document.
Prime entry Books.
Financial statements.
Financial Ratio Analysis.
Statutory Requirements.
Work place Planning.
Recruitment.
Training.
Appraisal.
Pay and Benefits.
Equal Opportunities.
Health and safety Concerns.
1. Production.
Department responsible for ,
Process of converting Raw material in to Finished goods or Services, for the Customers.
Raw materialsFinished goods
or servicesCustomer
Who is In charge for the Production Department?Production Manager.
What are the some of tasks
• Determine how the Good or Service will be manufactured or delivered.
• Determining what Resources are needed for production.
• Planning the time scale of production.• Stock management & control.• Performing quality control.• Arranging delivery of products to customers.
What are the some of tasks contd….
• Meeting Production Targets and deadlines.• Conducting Research and Development(R&D)
Poor Planning & Control may lead to a delay or halt in production and this could cost the company a lot of money.
2. Marketing.
Marketing department responsible for,
a) Identifying and Satisfying customer wants and needs.
b) Making sure that the company's products sell.
How can the Marketing Department ensure that the firms Products sell?
Conducting,• Market Research.• Test Marketing• Packaging• Advertising.
What are the other major functions of the Marketing Department.
1.
2.
3.
4.
5.
4 Ps of Marketing.
1. ProductMaking sure that Goods and services meet the
customers requirements.• Size• Color• Packaging• Core functions• Market research• Branding• Product development
4 Ps of Marketing contd….
• 2. PriceCorrect pricing method to sell the product.• Depending on level of demand.• Number of substitute products.• Cost of production.
4 Ps of Marketing contd….
3. PromotionMaking sure customers know about the product• Using mass media like TV or Newspapers• Sales promotions• Special donations• Free samples
4 Ps of Marketing contd….
4.PlaceMaking sure goods and services are in
convenient places for customers to purchase
• Must selected the light location.
3. Finance
Major functions of the Finance Department,• Managing the finance
What must the Financial Manager ensure•Ensure that accurate recording and reporting of financial documentation.•Comply with legal requirement.
Primary Entry Books & Source Documentation Process.
• Receipts• Voucher• Sales Invoice• Purchase Invoice• Credit Note• Debit Note• Petty Cash Voucher• Journal Voucher
• Cash Book
• Sales day Book• Purchase day Book• Sales Return day Book• Purchase return day Book• Petty Cash Book• Main Journal
Financial Statements.
• Manufacturing Account.• Trading Profit and Loss Account.• Cash Flow Statements.• Balance Sheets.
Financial Performance Indicators.
1. Gross Profit Ratio.
2. Net Profit Ratio.
3. Pay Back Period.
4. Return on Investment (ROI).
5. Current Ratio.
6. Quick ratio.
4. Human Resources/ PersonnelResponsible for,
Managing the personnel of the organization.
Main Function,•Workforce Planning.•Recruitment.•Training.•Appraisal.•Pay and benefits.•Equal opportunities.•Health and safety concerns.
Statutory Requirements.
• Tax Computations.• Auditing.• Company Secretarial Requirements.• Other.
Major Functions of a Business
1. Risk taking functions.
2. Management.• Starting.• Opening.• Planning.• Staffing.• Controlling the business.
Major Functions of a Business contd..
3. Planning.
4. Financial Functions.
5. Innovative Functions.
6. Payment of direct and Indirect Cost.
7. Production Function.
8. Use of Technology.
9. Optimum combination.
10. Improvement in Quality.
Major Functions of a Business contd..
11.Sales Function.
12.Transportation and Communication.
13.Social Function.
14.Motivation of the Staff.
Cross Functional Need.
• Need Analysis.• Research.• Market Test.• Component Design.• Product Test.• Production Research.• Equipment Design.• Production start.
Marketing.
R&D Engineering.
Manufacturing.
Marketing Information
System.
Sales Management.
Sales Force Management.
Interactive Marketing.
Advertizing & Promotion.
Marketing Management.
Sales Forecasting.
Market ResearchProduct
Management.
Computer Aided Engineering. Process Control
Computer Aided Manufacturing.
Purchasing recievings
RoboticsMaterial
requirement Plann
Machine Control
Production/Operation.
Human Resource
Management
Compensation Analysis.
Personnel Requirement Forecasting.
Training & Development
Analysis.
Government Regulation.
Personnel Record Keeping.
Employee Skill Inventory.
Accounting Information
System
Order Processing. Inventory Control. Accounts Payable.
General Ledger.Payroll.Accounts
Receivable.
Finance Information
System.
Cash Management.Financial
Performance Analysis.
Financial Forecasting.
Financial Planning.Capital Budgeting.Investment
Management.
Credit Management.
BICARSA
Billing.
Sales Analysis.
Accounts Receivable
Inventory Control.
Thank You
