The functions of business

All businesses irrespective of size, product or the technology used, have several functions in common, including production, marketing, finance, control and people.

Production

The production function relates to all activities concerned with the creation or making of the goods or services the business intends to sell. This will include the purchase of raw materials, the location of the business, the organization of the work process and the control of quality. Methods of production will vary according to the product of the business, its size, the size of the market and the technology available to it.

Marketing

The marketing function includes researching the market, product planning, packaging, pricing, advertising, sales promotion and the distribution of the product to the final consumer. These activities are known as the marketing mix. They are the ingredients in any marketing plan, but their relative importance will vary according to the type of product, the customers (either consumers or other firms) and the objectives of the business itself.

Finance

Every business needs money to start up and remain in operation. The management of money is, therefore, essential for business survival.

Control

A business has its objectives, and all its activities should be directed towards achieving those objectives. It needs to establish ways of testing whether or not this is happening and to adapt its methods accordingly. To do this it will use a variety of methods, many based on statistical and accounting techniques.

People

All businesses need to manage people. Even the smallest business in which the owner is the only person concerned has this function. The owner has to manage him/herself! If you do not believe this, think about how often your own ability to achieve your objectives depends on such apparently trivial things as getting out of bed early enough in the morning, organizing a study programme or simply remembering to make a list of the things you need to do. Managing yourself is probably the most difficult task in people management!

Constraints

A constraint is a restriction placed on an individual or a group which prevents them achieving their objectives. Constraints can be internal (availability of finance, available skills in the workforce, existing plant, organization), or external (the state of the economy, legal requirements, the behaviour of competitors and customers, social and political attitudes).

1. Which of these statements expresses the main idea of the text?

1. The production function relates to all activities concentrated on the creation or making of the goods or services the business intends to sell.

2. Every business needs money to start up and remain in operation.

3. Managing yourself is probably the most difficult task in people management!

4. All businesses have several functions in common such as production, marketing, finance, control and people.

2. Find in the text English equivalents of these words and phrases.

функції бізнесу	19. ціноутворення	37.запобігати, перешкоджати
незалежно від розміру	20. стимулювання збуту; стимулювання праці торгових працівників	38. внутрішній примус
взагалі	21. розподіл продукції	39. стан економіки
виробництво, продукція	22. кінцевий споживач	40. юридичні вимоги
маркетинг	23. комплекс маркетингу	41.поведінка конкурентів і клієнтів
мати відношення до	24. складова частина	42. заощадження
причетний до	25. відносна важливість	43. вимога
розробляти продукцію	26. залишатися в дії	44.демографічна тенденція
мати намір	27. необхідний, істотний	45. рівень безробіття
покупка	28. виживання бізнесу	46. відношення до бізнесу
сировина	29. пристосовувати	47. профспілки
розміщення бізнесу	30. відповідно	48. правова установа
організація виробничого процесу	31. оснований на	49. закони
контроль якості	32. статистичний метод	50. стан технології
придатний, корисний	33. керувати людьми	51. відношення уряду до 52. досліджень
дослідження ринка	34. досягати мети	53. запаси на час війни
планувати асортимент виробів	35. примус
18. упаковка	36. обмеження

3. Are these statements true or false? Correct the false ones.

1. All businesses have different functions.

2. Business activity exists to satisfy the needs and wants of people.

3. The production is a technological relationship expressing the maximum quantity of a good attainable from different combinations of factor inputs.

4. Production methods will vary according to the product of the business, its size, the size of the market and available technology.

5. The marketing plan includes the marketing mix.

6. Marketing is a business activity which aims to satisfy the wants of customers.

7. The marketing mix will be affected the benefits a product offers the consumer and the type of the product.

8. Money is not essential for business survival.

9. The owner of a business is a resource of that business.

10. There are internal and external constraints.

4. Answer the questions.

1. What are the main functions of business?

2. Why the design of a new product is the concern of all business functions?

3. What does the marketing function include?

4. What is the marketing mix?

5. What is essential for business survival?

6. What is the most difficult task in people management?

7. What is the difference between internal and external constraints?

5. Write a summary of the text.

Text 6.