Starting and Running a Business/Functions of a Business
Functions of a business
editMost businesses must accomplish similar functions regardless of size, legal structure or industry. These functions are often organized into departments. Common departments include (but are not limited to):
- Accountancy
- typically responsible for financial reporting, financial controls and the raising of the capital necessary to run the business.
- Human Resources
- typically responsible for hiring, firing, payroll, benefits, etc.
- Marketing and sales
- responsible for selling the business' goods or services to the customer and for managing the relationships with the customer
- Marketing
- typically responsible for promoting interest in, and generating demand for, the business' products or services, and positioning them within the market
- Sales
- finding likely purchasers and obtaining their agreement (known as a contract) to buy the business' products or services
- Operations
- makes the product or delivers the service
- Production, costs, and pricing|Production
- produces the raw materials into the delivered goods, if they require processing
- Customer service
- supports customers who need help with the goods or services
- Procurement
- responsible for acquiring the goods and services necessary for the business. Sometimes organized as:
- Strategic sourcing
- determines the business' needs and plans for acquiring the necessary raw materials and services for the business
- Purchasing
- processes the purchase orders and related transactions
- Research and Development
- tests to create new products and to determine their viability (e.g. pilot plants)
- Information Technology
- manages the business' computer and data assets
- Communications/Public Relations
- responsible for communicating to the outside world
- Administration
- provides administrative support to the other departments (such as typing, filing, etc)
- Internal Audit
- an independent control function typically accountable to the Board of Directors for reporting on the proper functioning of the other departments
Management is sometimes listed as a "department" but typically refers to the top level of leadership within the business regardless of their functional role.