1. IB Business and Management
Business Functions
IB Business and Management

2. Recap - Questions What is a business and what does a business do?
What is the difference between a good and a service?
What are the 4 factors of production?

3. Business Functions
What sorts of tasks will the manager have to do in order to run the business successfully?
What is the benefit of this to the business?
The business may have to split into departments that deal with different areas of the business. These departments are also known as FUNCTIONS
The structure at this point is likely to be relatively informal and adhoc, however as the business grows and more staff are employed staff will start to specialise in one area of the business and focus on specific roles
The business is likely to formalise its structure in order to ensure it is clear what everybody’s job is
Think about a small bar and restaurant. At the start it is likely to be owned and managed by the same person, who may have a small number of staff
What FUNCTIONS might a large business have?

4. Operations/Production
Business Functions
Sales and Marketing
Procurement
R&D
Human Resources
Finance
Operations/Production
Customer Service
They may also have other functions such as Administration or IT which support the other functions
Businesses may have some or all of these departments depending on its size and the nature of the business

5. Task – Collective memory
In groups of 4
Each person from your group is going to take it in turns to have a 15 second look at a diagram
You must return to your group and fill in as much detail as you can

7. Task Sort cards Sort the cards into the relevant departments:
> Human Resources
> Production
> Finance
> Marketing
ON THE BLANK ONES WRITE DOWN OTHER TASKS AND PLACE THEM APPROPRIATELY

8. You are the Production/Marketing/Finance and Human Resources Department for Kellogg’s cereals
In the following scenarios what would your department/function need to do?

9. The company want to launch a new product in 6 months time

10. A popular TV channel screens a program which exposes the cereal market for promoting unhealthy products to children

11. The company has decided to close down a factory in the USA in order to move production to Brazil where labour is significantly cheaper

12. Food for Thought…
How important is it for the functional departments to be communicating and working together?

13. One more…
Are there are functional areas which perhaps work closer with each other than others?