3rd Bac - Operational Plan. Functional Areas. Organizational Structure.

 Operational Plan. Functional Areas. Organizational Structure.  

An entrepreneurship usually has four basic areas to make it work, which are: marketing, production, finances and human resources. At the beginning of an entrepreneurship, these functions tend to be fulfilled by the entrepreneur. 

 

Areas of Management

In the majority of cases, the functional areas of a new business tend to be related with the areas of marketing, finances, production and human resources. At the beginning these functions can be directed in the same place and by the same person (the entrepreneur). Therefore, for the good performance of the business, the entrepreneur must have knowledge of both, the productive part of the good or service as well as the area of marketing, finance and human resources.

 

Production

The production area is the space from where the good or service is generated. For its operation, it requires the technical indications of the procedures to follow, plus the availability of the machines, equipment and materials that are needed. 

For the production of goods, the manufacturing process usually takes place in a different location and prior to selling them.

For the production of services, it tends to be generated at the same time the customer is making the purchase.

Marketing

The marketing area is the organizational space through which the entrepreneur carries out all the activities that help them answer the question: how to motivate the consumer to acquire the product? This functional area helps to convert the production effort into income that will help pay costs and expenses, and also profit.

Finances

Every productive activity is reflected in the financial results generated at the end of each accounting period. When the entrepreneur has financial information, it means he’s in the capacity to know the profits or losses. This will help to evaluate the effort and investment made.

Human Resources

It’s the functional area where the strategies and forms of human action oriented to the recruitment, selection, hiring, induction, training and motivation of people are defined. These people will participate in the production of the good or service.

The good management of this functional area will create a good working environment which will make the production area more efficient and effective.

Organizational Structure

It’s the graphic representation of the organic structure of a business. It shows the structure according to the activity areas and the people who are in charge.




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