The Core Business Functions Business Essay
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Published: Mon, 5 Dec 2016
1.1 Core function analysis is just a process whereby every part of functions are categorized, so that a plan can be developed to reduce asset in non-core or marginal functions in order to capitalize on efficiency and productivity in the core functions. Core business functions are activities of an enterprise yielding income: the production of final goods or services in dented for the market or for third parties. Generally the core business functions make up the key activity of the enterprise, but they may also comprise other (minor) activities if the enterprise considers these as part of its core functions. There are many types of core business function are Human Resources,Sales and Marketing,Research and Development ,Production/Operations,consumer Service,Finance and Accounts and Administration and IT (Brown, 2008).
Human Resources Management activities linked with recruiting, hiring, training, compensating, and dismissing personnel: provided that employee assistance, Hiring and firing personnel, managing human resources recruiting, contribution labor relations services, Training, Managing payroll and compensation.
Research and Development performance such as the following associated with bringing a new, enhanced, or redesigned product or service to market (many of these activities are research, marketing analysis, design, and engineering activities): Developing business plans, products or services, Analyzing markets Researching products or services ,Designing products or services Testing (Brown, 2008).
Production/Operations actions are those which transform inputs into final outputs, either goods or services. During most cases, business functions characterized as operations will liken with the manufacturing code of the establishment or the action most directly associated with that code. The precise function the production of a good or the provision of a service will relate to the specific industry. Assembling products, managing production, producing goods, managing services, providing services, Conducting quality assurance or quality control and fabricating components (Kissel, 2011).
Consumer Service Activities, including training, help desks, call centres, and customer support for guarantees and warranties, that provide support services to customers after purchase of the good or service, Offering call centre services Maintaining and repairing products, Providing customer relations, given that technical support, Providing customer service or support, Providing warranty support and Installing products.
Marketing, sales, and customer accounts behavior aimed at informing existing or potential buyers (many of these activities are promotion, advertising, telemarketing, selling, and retail management activities) are Advertising, Conducting market research, Managing accounts, Coordinating media relations, Billing, Merchandizing, Branding or managing products , Processing orders ,Collecting payments ,Selling Marketing and Telemarketing.
Administration and IT Activities related to maintenance, automation, design or redesign of equipment, hardware, software, procedures, and technical knowledge were Developing computer system, Providing Internet services, Maintaining or repairing computer systems Designing processes Managing data, Developing and testing software, Processing data, Providing software and information technology and Engineering services (Brown, 2008).
1.2 Sales and marketing is most important for cell phone Company in Kathmandu. Nepal has a young consumer market. It will be a prospective target market because youth in the Nepalese society want to be updated with new technology. They are more likely to spend money on technological things. Nepal will be marketing cheaper cell phones all over the nation so that more young people can have the funds for them based on their earnings. Among Nepal’s increasing GDP and average income, younger people will promote from this growth and purchase more economical goods. Cell phone tendency is going to take off within the next couple of years all over Nepal. Rise in per-capita will allow people to use more on lavishness items. Phones will be less expensive (Mawri, 2012).
A market potential objective was how much volume and share are nearly boundless for the next few years. As there is such a huge market that needs the delivery of phones as long as you have a good brand image almost all, if not all of your stock should be purchased. However setting initial goal of 70 thousand phones is not unreasonable and not to cost problematical.
Cell phone will finally be considered a requirement. The objective of sales promotion is to induce purchase as well as to retain existing consumers by providing special incentives for Future Tech consumers. It is particularly encouraged that Future tech should tie -up with corporations to allow discounts for workers. This promotion move will prove to be highly effective as the primary target segment is the young working professionals. This is an ideal strategic tie-up as it will certainly generate sales volume as well as brand consciousness. There is no better advertising strategy than “word of mouth” advertising. In addition, there will be strategic tie-ups with TV, FM. For example, audience tuning to Kantipur TV programs answering questions correctly given after the end of the program can get Sony Ericsson mobile phones as prizes. In turn, KTV will in directly promote Sony Ericsson brand awareness by mentioning the Sony Ericsson as prize-givers. For music stores: customers purchasing CDs, VCDs, DVDs from music stores will get their points added in there (Mawri, 2012).
Ideally all stakeholders should to be dealt equally but in reality some are more important or influential than others so their influence is likely to be greater in the organization. Analyze the statement with valid examples. (1.2)(D1)
Stakeholder is a person who has something to gain or lose through the
outcomes of a planning process, program or project (Dialogue by Design, 2008).
Stakeholder Analysis is a technique used to identify and assess the influence and importance of key people, groups of people, or organizations that may significantly impact the success of your activity or project (Friedman and Miles, 2006).
Stakeholder Management is essentially stakeholder relationship management as it is the relationship and not the actual stakeholder groups that are managed (Friedman and Miles, 2006).
They can be divided into inside stakeholders and outside stakeholders. Inside stakeholders are people who are nearby to an organization and have the strongest or most direct claim on organizational resources: shareholders, executive employees, and non executive employees.
Shareholders are the owners of the organization, and, as such, their claim on organizational resources is often careful to the claims of other inside stakeholders. The shareholders’ donation to the organization is to spend money in it by buying the organization’s shares or stock. The shareholders’ stimulus to invest is the potential money they can earn on their asset in the form of dividends and increases in the price of the stock they have purchased. Investment in stock is risky, on the other hand, because there is no agreement of a return. Shareholders who do not believe that the inducement (the possible return on their investment) is enough to warrant their donation (the money they have invested) sell their shares and withdraw their support from the organization.
Executive Employees Managers are the employees who are accountable for coordinating organizational resources and ensuring that an organization’s goals are effectively met. Higher managers are responsible for investing shareholder money in various resources in order to maximize the future value of goods and services. Managers are, in effect, the agents or employees of shareholders and are appointed indirectly by shareholders through an organization’s governance structure, such as a board of directors, to manage the organization’s business. Managers’ charities are the skills they use to direct the organization’s response to pressures from within and outside the organization.
Non executive Employees an organization’s labor force consists of non executive employees. These members of the labor force have responsibilities and duties (usually outlined in a job explanation) that they are responsible for performing. An employee’s influence to the organization is the performance of his or her duties and responsibilities. How well an employee performs is, in some measure, within the employee’s control. An employee’s motivation to perform well relates to the rewards and punishments that the organization uses to influence job performance. Like managerial employees, other employees who do not feel that the inducements meet or exceed their influences are likely to withdraw their support for the organization by reducing their influences or the level of their performance, or by leaving the organization.
Outside stakeholders are people who do not own the organization (such as shareholders), are not employed by it, but do have some interest in it or its activities. Consumers, suppliers, the government, trade and other unions, local communities, special interest groups, and the general public are all outside stakeholders.
Consumers are usually an organization’s largest outside stakeholder group. Consumers are induced to select a product or service (and thus an organization) from potentially many alternative products or services. They usually do this through an estimation of what they are getting relative to what they have to pay. The money they pay for the product or service represents their influence to the organization and reflects the value they feel they receive from the organization. As long as the organization produces a product or service whose price is equal to or less than the value consumers feel they are getting, they will continue to buy the product or service and sup-port the organization. If consumers refuse to pay the price the organization is asking, they usually will withdraw their support, and the organization loses a vital stakeholder.
Suppliers, another important outside stakeholder group, contribute to the organization by provided that reliable raw materials, element parts, or other services that allow the organization to reduce uncertainty in its technical or production operations, thus allowing for cost efficiencies. Suppliers therefore can have a direct effect on the organization’s efficiency and an indirect effect on its ability to attract consumers.
Government traditionally, different governments have had a major influence upon both the markets and the operating environment of Nepalese business. This participation has been both proscriptive and prescriptive in nature. As business operates within, and contributes to, our society, governments have several claims on an organization. While it wants companies to compete in a fair manner and obey the rules of free competition, it also wants companies to obey agreed-upon rules and laws concerning the payment and treatment of employees, workers’ health and workplace safety, fair hiring practices, and other social and economic issues.
Unionized Employees The relationship between a trade or other union and an organization can be one of conflict or cooperation. The nature of the relationship has a direct effect on the productivity and effectiveness of the organization, the union membership, and even other stakeholders. Cooperation between managers and the union can lead to positive long-term outcomes if both parties agree on an equitable division of the gains from an improvement in a company’s fortunes. Managers and the union might agree.
Local Communities also have a stake in the performance of organizations because employment, housing, and the general economic well-being of a community are strongly affected by the success or failure of local businesses. This is of particular importance in Nepal due to the unique nature of the Nepalese geography and demographics.
Special Interest Groups and the General Public Nepal’s public also wants its corporations and other businesses to act in a socially responsible way so that corporations generally refrain or are constrained from taking any actions that may injure or impose unreasonable or unjust costs on other stakeholders. As Nepal’s social culture evolves, people become more aware of how business activity impacts the environment and social issues. Further than elections and government mandates, many of these issues become mainly important to different sub rudiments of the broader public or what are referred to as unique interest groups.
An organization is worn at the same time by different groups of stakeholders to each achieve or further their own goals. It is the collective influences of all stakeholders that are needed for an organization to be feasible and to achieve its mission of producing valued goods and services. Every stakeholder group is motivated to contribute to the organization by its own set of goals, and each group evaluates the efficiency of the organization by judging how well it meets the group’s specific goals.
Shareholders assess an organization by the return they receive on their asset; consumers, by the reliability and value of its products relative to their price; and managers and employees, by their salaries, stock options, situation of employment, and career scenario. Frequently these goals conflict and stakeholder groups must bargain over the suitable balance between the inducements that they should receive and the charity that they should make. For this reason, organizations are often regarded as alliances or coalitions of stakeholder groups that directly (and indirectly) bargain with each other and use their power and influence to alter the balance of inducements and charity in their favor An organization is viable as long as a dominant coalition of stakeholders has control over sufficient inducements so that it can obtain the charity it needs from other stakeholder groups. Though, when stakeholders refuse to contribute, the organization is placed into peril. In the United States, the spectacular collapse of Enron and WorldCom occurred when their illegal actions became public and their stakeholders refused to contribute: Shareholders sold their stock, banks refused to lend money, and debtors called in their loans.
There is no reason to assume, however, that all stakeholders will be equally satisfied with the balance between inducements and charity. Indeed, the implications of the coalition view of organizations are that some stakeholder groups have priority over others. To be effective, however, an organization must at least minimally satisfy the interests of all the groups that have a stake in the organization. The claims of each group must be addressed; otherwise, a group might withdraw its support and injure the future performance of the organization, such as when banks refuse to lend company money, or a group of employees goes out on strike. When all stakeholder interests are minimally satisfied, the relative power of a stakeholder group to control the distribution of inducements determines how the organization will attempt to satisfy different stakeholder goals and what criteria stakeholders will use to judge the organization’s effectiveness.
Evils that an organization faces as it tries to win stakeholders’ approval include choosing which stakeholder goals to satisfy, deciding how to allocate organizational rewards to different stakeholder groups, and balancing short-term and long-term goals.
You are a marketing officer of a chocolate company, analyse the environment of your country to achieve the set goals and objects of your company. (1.3)(D2)
Ferrero S.p.A. Multinational manufacturing company specializing in sweets, founded in 1942 by Pietro Ferrero in Alba, Piedmont, Italy. Consolidated revenues for fiscal year 2009/2010 of the group were about 6.62 billion euro’s. Around the world employed are over then 21,700 employees, with38 operating companies for the sale, and 15 establishments for the manufacture. Eight of these establishments are distributed in Europe and the remaining seven each in Argentina, Australia, Brazil, Ecuador, Puerto Rico, Canada and the United States. At May 2009, the Reputation Institute, after having carried out a survey in 32 countries, interviewing more than60, 000 people, said Ferrero is the most trusted and has the best reputation in the world according to the customer, followed by the Swedish company IKEA and the U.S. Johnson &Johnson. The rankings also point toward Michele Ferrero (the recent largest shareholder) as the richest man in Italy. It isn’t a significant data, but it is the formalization of the significance Ferrero Company. A unique company in the world, diverse from all others: for products and strategies, for thinking and history. In 2009 the company also earned the “Reputation Award”, which is the most high-status international award that a company can receive. Customers are asked to rate 32 countries evaluated the 600 largest companies in the world based on criteria such as trust, respect, innovation, positive feelings and overall esteem. The award was given in Amsterdam at Ferrero, which in Italy has received the highest approval rates in the world (Humek, 2012).
Ferrero (2008) said that “its center is an asset of resources enabling the Group to surmount difficulties, while maintaining the course towards solid development for the future. These resources come from the power of its products and from the sense of belonging shared by all its employees. So, be convinced, persist to provide your best with the trustworthiness, professionalism and commitment that have always distinguished your work: inimitable values that assist us to be flourishing in the past and will be a key constituent to continue towards additional achievement in the future.”
PESTLE analysis stands for “Political, Economic, Social, Technological, Legal and Environment analysis” and describes a structure of macro-environmental aspects utilized in the environmental scanning component of strategic management. Also a part of the external analysis when performing a strategic analysis or doing market research, and provides an impression in different macro environmental factors that the company has to take into thought. In particular:
Political factors are how and to what degree a government intrudes in the nation economy is. Particularly, political factors contain areas such as tax rule, employment law, environmental law, trade restrictions, levy, and political constancy.
Economic factors consist of economic growth, interest tariff, trade rates and the increase rate. These aspects have major impacts on how businesses function and formulate decisions. For example, interest tariff affect a firm’s capital cost and therefore to what level a business is raised and expands. Exchange rates affect the exporting good costs and the deliver and cost of imported goods in an economy.
Social factors contain the cultural aspects and include health awareness, population growth rate, age sharing, career outlook and importance on safety. Tendency in social factors affect the requirement for a company’s products and how that company run;
Technological factors comprise of technical aspects such as research and development (R&D) activity, automation, technology enticements and the charge of technological change. They can determine barriers to entry, minimum proficient manufacture level and influence outsourcing decisions. Additionally, technological shifts can affect costs, features, and lead to innovation;
Environmental factors include natural and environmental aspects such as weather, climate, and climatic transform, which may particularly affect industries. Growing consciousness of the possible impacts of climate change is disturbing how companies function and the products they present, both creating new markets and diminishing or destroying existing ones; (Humek , 2012).
Ferrero is committed to using environmentally-friendly methods every one of over the world. To this end: they organize projects and operational programs that respect the environment in all the fields and operate in; they manage factories by using energy, materials and natural resources in an efficient manner, with the aim of reducing their environmental impact, reducing waste and refuse and, where possible, using renewable energy sources; company aware of the fact that the conservation of water quantity and quality is not just an environmental problem, but a challenge which faces the entire agricultural, economic and social system. Consequently company is committed to the responsible management of water resources; establish environmental objectives and undertake to measure the progress they have made; company is committed to educating partners so that the principles listed above will be followed everywhere and by all echelons of organization. In order to ensure that all this is methodically guaranteed, the company has implemented an Environmental Management System in line with ISO14001:2004.
According to our country Nepal we can found this chocolate everywhere some department store and we cannot found these chocolates everywhere because this chocolates price is very high cost. Everybody cannot efforts these chocolates in Nepal. We also found duplicate of feerero in Nepal. Market is also not good in Nepal due to government policies they have to charge tax and price will go high.
It is essential for business to recognize its stakeholders and their needs and requirements. Most of the organizations fail to concentrate on their entire stakeholder still Most of the company fails to address their entire stakeholder requirements still recognizing the value and help made by them because of which company fail.
Therefore, considering the needs of stakeholders, incorporate those needs into the strategy of company after careful consideration of ability of the company is essential.
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