Functions of business
A business is an organization of human, material and other intangible resources. It is created to offer satisfaction to its customers, owners, employees, managers and other stakeholders. Hence, the function of a business is to create, retain and satisfy profitable customers as a means of successfully achieving the desired ends of the enterprise. In the beginning, the profit concept was replaced by profit cum service. At present, the concept of profit through service is the popular and widely accepted basic objective of modern business.
- Organizing function: It helps to organize all the activities. It organizes men, Machine, materials, money and methods. It performs different activities and all activities are organized properly
- Financing function: It is related to money. It helps in maximum utilization of resources. Bank is a financial company. All the activities related to money are defined in this function.
- Production function: Production means converting raw materials into finished products to satisfy human wants. Hence, under it, different inputs like manpower, materials, machinery, capital, information and energy are transformed into specified outputs as demanded by the society.
- Distributing function: It helps in the transfer of goods/services from producers to customers. It transfers right product at right time in right place.
- Personnel function: It deals with human activities. It is related o the utilization of people to perform different activities. It is also called staffing function. It helps in management of resources.
- Managing function: It helps in management of business. It includes planning, organizing, controlling, coordinating, decision making and so on. It helps making activities of people effective.
- Research and development function: It helps in improvement of product. It works under the taste, desire and preference of the customers. In it various marketing, strategies, skills, knowledge and experts are used. Research and development is the main way to achieve profit with customer satisfaction
- Promotional function: Promotional function is related with the creation of new ideas, identification of business opportunities, detailed investigation, preparation of financial plan etc.
- Marketing function: The marketing function is able to satisfy the needs of the customers through consumption of goods or services. It helps to transfer those goods and services from producer to the end customer. It also helps in the fixation of price as well as sales promotion.
- Public relation function: Maintaining public relation is also an important function in a business house. To make public relation personal contact, publicity campaigns etc. are the major ways which help to increase the goodwill and image of business firm.