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

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

3. 2a. Production / Operations
What are the four vital functions that a business must have to operate effectively?
Production
Marketing
Finance
Human Resources (Personnel)

4. 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

5. 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.

6. 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?

7. 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.

8. 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.

9. 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.

10. 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

11. Business Sectors

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

13. 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.

14. 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.

15. 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