as functional areas within business. as:u2 functional areas within business key functions in...

AS

Functional areas within business

AS:U2 Functional areas within business

Key functions in business

Distribution

Accounts/Finance

Research and development

Human resources

Marketing

Administration

Sales

The main functional

areas

DesignProduction

ICT Services


Delivering key functions

In a small business, will be done by individuals

In a medium/large business, will be done by individuals working in functional areas or departments


Links between functions

All functional areas must link together to achieve the overall aims and objectives

Each functional area collects and stores information using ICT

This information needs to be shared within thecompany

This means cooperation and good communications, which obviously ICT plays a major part!!

Design

Finance

Production

MarketingAdmin

ICT

Sales

R & DHR

Distribution


Human resources

Includes the legal rights and responsibilities of employer and employees

Health and safety

Employee organisations

and unions

Training, development

and promotion

Working conditions

Recruitment, retention and dismissal

The main responsibilities of the

human resources function

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What information does the Human Resources

Function need?


Marketing and Sales

Both are concerned with customer needs.

Sales Promotion

Market research

Activities include:

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What information does the Marketing Function

need?


Finance

Concerned with money and future plans

Preparing accounts, eg invoices, management accounts, financial accounts for shareholders and Inland Revenue

Preparing wages and salaries

Obtaining capital and resources, eg money for expansion or to pay for resources such as equipment and materials.

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What information does the Finance Function

need?


Research and development

Activities include:

Technological developments

Scientific research

Design features

Performance of product

Concerned with developing new goods/services and updating old ones

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What information does the Research Function

need?


Production (sometimes called operations)

Concerned with the main business activities

Obtains and converts resources of the business into goods/services, ie

– Buildings and land

– Equipment

– People

– Materials

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What information does the Production Function

need?


Customer service

Concerned with customer relationships

Activities include:

Providing information

Giving advice

Providing credit facilities

Delivering goods

Providing after-sales service

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What information does the Customer Service

Function need?


Administration

Cleaning and maintenance

Security

Health and safety records

Clerical work, eg mail, record keeping

The role of administration and

ICT function

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What information does the Administration

Function need?


The use of IT

Relates to all functional areas:

Electronic communications (eg email)

Data sharing or EDI (eg databases)

Security systems (eg virus protection)

External communications (eg Internet)

Online support for customers (eg order tracking)

Electronic transactions (eg EFT (linked to EDI))

Support for software applications, electronic communications and

electronic transactions

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What information does the ICT Services Function need?


Functional variations

No two businesses are the same!

Functions will vary because of:

Size and scale of business

Activities of business

Type(s) of customers

Needs of customers

Preferences of owner(s)


Investigating functional areas

Identify key functions

Find out where these carried out (or by whom)

Check names of key areas/departments

Identify what information is collected and how

Identify links between functions/areas

Identify use of IT within/between functions and customers to access stored information or exchange information

Note any problem areas


Learning objectives

25 of 25

Why must the functional areas within a business work together?

How does ICT help the different functional areas perform their tasks efficiently?

How does ICT help businesses save money?

Why is ICT vital for security and safety?


Communication

The functional areas in a business can work on the same or different projects. Ultimately, they share the same goal: achieve the aims of the business.

It is, therefore, very important that they cooperate and communicate with each other and the customers.

Communication should be fast, efficient and inexpensive; ICT can ensure this happens. It can be very expensive to install but can then lead to cost savings.

What methods of communication do you think are used between the functional areas?


Uses of ICT in business

ICT (Information and Communication Technology) can make organizations more efficient by saving money and improving quality. ICT is used for:

internal communications

data sharing

security systems

external communications

online support for customers

electronic transactions

production.

Try to think of some specific examples of how ICT helps functional areas work efficiently.


Simple ICT . . . MAXIMUM impact!


Bar codes and EPOS

Sophisticated till systems are used in shops and catering outlets which require a bar code to be scanned to produce the price of an item.

EPOS (Electronic Point Of Sale) is used for all products. It involves linking bar code scanners to the central stock control system – a computerized database which monitors all sales and produces detailed reports.


Electronic purchases at Tesco

Purchases inside Tesco stores and on their website are processed electronically. The data from each purchase is stored in a database. The functional areas access that information and use it to perform their tasks and assess whether or not they are meeting their objectives.

How could Tesco’s other functional areas use the data from EPOS to perform their tasks?

Marketing, for example, build up customer profiles. This helps them target the right market segments. Tesco’s loyalty card, ‘Clubcard’, has enabled it to construct the UK’s largest database.


A business example. . .


ICT at Thorpe Park

Internet sales

cash registers

ride control

security

Below are some of the uses of ICT at Thorpe Park.

Can you add any more uses for ICT at Thorpe Park to the spider diagram?


The security of premises

At Thorpe Park, walkie-talkies are used by the staff to relay security information. Each department has its own channel so that all of the staff within a department can be in constant contact with each other and with the other departments.

The security of every business and organization is taken very seriously and ICT plays a vital role.

CCTV (closed circuit television) cameras are used in most premises and are linked to video recorders and monitors which security guards watch. Alarms that are set off automatically send security alerts, either to the police or the fire service.


Ride safety at Thorpe Park

This information is visible on a screen watched by the operator in the control cabin. The system detects faults and potential problems. It also monitors the locking of safety bars and a ride cannot start until they are locked.

Many of Thorpe Park’s rides use computer control systems to ensure safety. They are fed by mechanical levers and have optical or magnetic sensors to detect the speed, number and frequency of the carriages.

Why are these safety measures necessary?

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