The concepts of microeconomics help a finance manager in developing decision models like fixation of prices, cost volume profit analysis, break even analysis, inventory management decisions, long-term investment decisions called capital budgeting, cash and receivables management models or working capital management decisions etc.
Materials required for production of commodities should be procured on economic terms and should be utilised in efficient manner to achieve maximum productivity.
Supply chain management is a crucial aspect of any business and the proper operations management approach can make or break a business. For example, the cost of raising funds, expected returns on the investment of such funds, liquidity position, forecasting of sales, etc.
A firm is also influenced by the overall performance of the economy as it is dependent upon the money and capital markets for the procurement of investible funds.
Operations is also the biggest player in running and managing the supply chain. Fayol originally set forth five management functions, but management book authors have condensed them to four: A sound personnel policy includes proper wage structure, incentives schemes, promotional opportunity, human resource development and other fringe benefits provided to the employees.
The finance manager should, thus, recognise and understand the macroeconomic theories, monetary and fiscal policies and their impact on the economy as a whole and the firm in particular.
Perhaps just as important, the marketing department must ensure that the target market is aware that the companies goods and services, and further, are aware that the products are able to meet their needs and wants. Supervisors can use written and verbal communication to motivate workers with incentive programs, rewards, praise and constructive criticism.
Controlling Controlling is a function of management that involves measuring achievement against established objectives and goals.
Operations must produce products and services in line with what the marketing department has dictated is necessary to meet the needs and wants of the consumer. Operations are responsible for producing what the company sells within the boundaries of the budgets and forecasts supplied by the finance department as well as the supply and demand forecasts of determined by the marketing department.
They re-evaluate their plans as conditions change and make adjustments as necessary. Marketing function is primarily concerned with the distribution of goods and services among the people.
They then formulate objectives to reach by certain deadlines and decide on steps to reach them. Operations must produce products and services in line with what the marketing department has dictated is necessary to meet the needs and wants of the consumer.
It is concerned with increasing the effectiveness of human performance in any organisation. If you like reading about this kind of stuff I have decided to do another post directly relating to this topic.
The above description clearly explains that these functions of business are 1 basic in nature, and 2 mutually dependent. Planning Planning involves deciding where to take a company and selecting steps to get there. This could mean developing investment strategies that produce a significant short-term yield without taking on excess risk.
This should give folks a practical application of the fundamentals at work by using Young Finance Guy as an example. They re-evaluate their plans as conditions change and make adjustments as necessary. During that period which was a time frame of 30 - 60 days for any given transaction Amazon.
Business Basics - The 3 Fundamental Functions of Every Business Explained No matter what type of business, or organization for that matter, you can rest assured that there are three fundamental functions that run that business and dictate how that business behaves.
What are the three basic functions of a firm? Do all firms/organizations (Private, Government, Not-for-profit) perform these three functions?. The management process include four basic functions: planning, organizing, leading and controlling.
management courses still use many of Fayol’s ideas to teach management to business. Job control is a basic function of communication in the workplace.
The communications that control the duties and behavior of employees on the job include company policies and job descriptions. Graphics that detail the hierarchy of the organization communicate the chain of command in the company.
Personnel function: This function is concerned with the human side of the business and concerned with procurement, development and maintenance of efficient and effective work force. The personnel functions include selection, training, promotion, transfer, payment. The basic functions of the firm are _____.
marketing, finance/accounting, and production/operations sales, finance/accounting, and operations%(1).Basic functions of a firm