Business Studies Grade 10 | Eight Business Functions

The Eight Business Functions

The Eight Business Functions

Every business – whether large or small – needs to carry out certain key activities to run successfully. These activities are grouped into eight essential functions. In large businesses, each function may be managed by its own department, while in smaller businesses, some functions might be combined or shared by fewer people. The nature and size of the business usually determine how these functions are structured.

Each of these eight functions has a specific purpose, but they are closely connected and must work together to help the business achieve its main goals, like making a profit, staying competitive and growing sustainably. If even one function fails to deliver, it can affect the overall performance of the business.

Below is an explanation of each function

General Management

The general management function is the heart of the business, responsible for coordinating and aligning all other functions so that the business can achieve its vision and goals.

• Plans what the business should do in the short and long term to succeed.
• Organises resources, people, and tasks to work efficiently toward business objectives.
• Leads by motivating and guiding employees, building commitment and teamwork.
• Controls operations by monitoring progress and making adjustments where needed.
• Ensures all business functions work together smoothly to achieve overall goals.

Purchasing Function

The purchasing function ensures the business has everything it needs to produce goods or deliver services by sourcing and buying from the right suppliers.

• Buys raw materials, equipment, office supplies, and other essentials.
• Chooses reliable suppliers, negotiates prices, and manages supplier relationships.
• Ensures timely delivery and consistent quality of goods.
• Helps keep production flowing and controls business costs.

Production Function

This function is about turning raw materials into finished products or preparing services that meet customer needs, focusing on quality and efficiency.

• Processes raw materials into products customers want.
• Balances cost, speed, and quality to produce effectively.
• Works to reduce waste and improve production processes.
• Ensures that enough products are available to meet demand.

Marketing Function

The marketing function connects the business to its customers by understanding their needs and finding the best ways to promote products and services.

• Conducts research to learn about customer preferences and market trends.
• Develops strategies to advertise and promote offerings effectively.
• Sets competitive prices and plans how products will reach customers.
• Builds a strong brand image to attract and keep customers.

Public Relations Function

Public relations builds and maintains a positive image of the business, helping it to communicate clearly with stakeholders and the wider public.

• Strengthens the company’s reputation and credibility.
• Communicates with different stakeholders, including customers and communities.
• Organises events and partnerships that enhance the business image.
• Manages issues or crises that could affect public perception.

Human Resources Function

The human resources (HR) function ensures the business has the right people and supports them to do their best work.

• Recruits and hires employees who match the company’s needs and culture.
• Provides training and career development opportunities.
• Looks after employee wellbeing and job satisfaction.
• Ensures fair policies, benefits, and legal compliance.

Administration Function

Administration supports the business by managing data, records, and internal processes that help decision-making and daily work.

• Collects and stores important business information safely and accurately.
• Keeps records updated and organised for quick access.
• Uses information technology to improve data handling and communication.
• Supports managers and staff by providing reliable information.

Financial Function

The financial function manages the business’s money to support operations, plan for growth, and keep the company financially healthy.

• Identifies how much money the business needs to run and expand.
• Manages income, expenses, and investments to keep cash flowing.
• Tracks performance through budgets and financial reports.
• Makes sure money is used efficiently to meet business goals.