Business and Management: 1.1 Nature of Business Activity Lesson 2: Business Functions Lesson 3: Primary, Secondary, and Tertiary Sectors.

What are the major functions of a business? 1. Focus Question What are the major functions of a business?

2a. Production / Operations What are the four vital functions that a business must have to operate effectively? Production Marketing Finance Human Resources (Personnel)

2b. Production / Operations What is this department responsible for? The process of converting raw materials into finished goods or services, for the customer. Who can give an example of this process? Raw Materials Finished Goods Or Services Customer

2c. Production / Operations So…who is in charge or responsible for the production department? The Production manager.  What are some of his/her tasks or duties? Determine how the good or service will be manufactured or delivered. Determining what resources are needed for production. Planning the timescale of production. Stock management and control Performing quality control Arranging delivery of product to customer Meeting production targets and deadlines Conducting research and development (R&D) The production manager’s role is a vital one. Poor planning and control may lead to a delay or halt in production and this could cost the company a lot of money.

3a. Marketing What is the marketing department responsible for? They are responsible for identifying and satisfying consumer wants and needs. They are also responsible for making sure that the company’s products sell. How can the marketing department ensure that the firm’s products sell? This is done by conducting market research, test marketing, packaging, and advertising. So…any guesses about what the major functions of the marketing department are?

3b. Marketing The Four P’s of Marketing: Product: making sure that goods and services meet the customer's requirements Size, color, packaging, core functions, market research, branding, and product development. Price: finding the correct pricing method to sell the product Depending on level of demand Number of substitute products and Cost of production.

3c. Marketing The Four P’s of Marketing: 3. Promotion: making sure customers know about the product. Using mass media; TV or newspapers. Sales promotion Special donations Free samples 4. Place: making sure goods and services are in convenient places for consumers to purchase. Must select the right location, location, location to distribute products to the marketplace.

4. Finance What is the finance department in charge of? Managing the organization’s money $$$$$ What must the financial manager ensure? They must ensure that accurate recording and reporting of financial documentation takes place. They must comply with legal requirements.

5. Human Resources / Personnel What is the human resources department responsible for? They are responsible for managing the personnel of the organization. What are they likely to deal with when managing people? Workforce planning Recruitment Training Appraisal Pay and benefits Equal opportunities Health and safety concerns Fostering working relations

Business Sectors

What are the major sectors of a business? 1. Focus Question What are the major sectors of a business?

2. Primary Sector What is the primary sector involved with? The extraction, harvesting, and conversion of land. Using natural resources as factors of production. Agriculture, fishing, mining, forestry and oil extraction. Less economically developed countries rely heavily on farming. In more economically developed countries, rely on machines and automation. As economies develop, there is less reliance on the primary sector in terms of employment and national output.

3. Secondary Sector Can you give an example of this? What is the secondary sector involved in? They are involved in using raw materials and other resources for the manufacturing of products. Can you give an example of this? What are some other businesses in this sector? Construction firms Pharmaceutical companies Clothes manufacturers Publishing firms Electronic manufacturers Energy production companies The output is then sold to the customers.

4. Tertiary Sector What is the tertiary sector involved in? They are involved in providing services to their private and corporate customers. Can you provide an example of this? Borrowing a book from the library, nothing is produced here, they are just offering a service. This sector is also know as what? The service sector. Can you list some examples of industries in this sector? Retailing Education Travel and tourism Entertainment Insurance Transport Banking and finance Healthcare and catering