Functional Areas of Business

Functional Areas of Business

Bethany Herman

MGT/521

October 20, 2014

Stephanie Edens

Functional Areas of Business

Pursuing a Master’s of Business Administration (MBA) degree means concentrating on the development of the skills and tools needed for business administration. The leaders of companies and organizations have to study the fundamentals of business and the functional areas of business in order to create an effective leadership team within the company. Companies formulate their organizational structures by creating subdivisions or departments around the functional areas of business. The purpose of this paper is to focus on the functional areas of business and the importance of those functions in the workplace to build a successful organization.

Both small and large companies have key functions that need to be performed on a regular basis. These functions may include, but are not limited to, acquisitions and mergers, accounts payable and receivable, customer service and human resources. Smaller companies may only have one or two individuals who perform these functions while large corporations have networks of employees who perform specialized tasks within the organization. Because the roles of management in different companies may vary, a management position can either bring success or failure to the entire organization.

Functional Areas of Business in Organizations

In a large organization, it is much easier to define and recognize the functional areas because there are specific departments within the company. Specific tasks are performed and implemented depending on the various departments within the organization. Typical organizational functions in business management may include:

* Production that ensures that goods are made and delivered and ensures that quality standards are met.

* Sales that involve meeting specified sales goals and generating new customer business.

* Marketing which identifies and fulfills a customer’s needs and wants and...