basic business functions & firm hierarchy

“BASIC BUSINESS FUNCTIONS & FIRM HIERARCHY “

PRESENTED BY:MAHGUL KHAN HIBA SHAIKHMARYAM QAZI VARDA SHAIKH

BASIC DEFINITION OF BUSINESSFormal organization that provides PRODUCTS or SERVICES to make profit.

PRODUCT BUSINESS

SERVICEBUSINESS

That make tangible

products, that has some physical

existence.

That provide

services like managing, planning,

maintaining etc.

SUPPORTS

4 BASIC BUSINESS FUNCTIONS

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BUSINESS PROCESS

BUSINESS PROCESS• Manner in which work is organized, coordinated &

focused to produce a valuable product or service.• It is basically defined in two areas:

For example:1. Some processes tied to functional area.Sales & marketing identifying customers.2. some processes are cross-functional.These are Fulfilling customer orders.

FUNCTIONAL AREAS OF OPERATIONS

• Functional areas are interdependent.• Each of the function requires data from the others. • Its main purpose is, better integration of functional

areas leads to improvements in: communication. Workflow. Success of company.

THE ORDER FULFILLMENT PROCESS

THE ORDER FULFILLMENT PROCESS

• Fulfilling customer orders involves a complex set of steps that requires the close coordination of the sales, accounting, and manufacturing functions.

FIRM HIERARCHIES OR

LEVELS OF MANAGEMENT IN A

FIRM

FIRM HIERARCHIE:“AN ORGANIZATIONAL STRUCTURE RANKED ACCORDING TO THE LEVEL OF IMPORTANCE”

• Firm hierarchical structure consists of a chain of commands that looks like a pyramid, shows the flow of authority from top to bottom.

• The distribution of power among the individuals of a corporation.

LEVELS OF MANAGEMENT IN A FIRM

There are three levels of management in a firm

•Senior management

•Middle management

•Operational management

Senior set of individuals, executive managers they are board of directors

Work in specific departments like accounting, marketing or production

convert resources into desired goods and services