Business Functions and Management
This domain tests how management coordinates production, marketing, finance and human resources to achieve objectives. Expect questions on the management process, production methods, the marketing mix and departmental roles.
Management process
Planning sets objectives; organising arranges resources; staffing fills roles; directing or leading motivates; controlling compares actual results with plans and corrects differences.
Business functions
- Production/operations transforms inputs into outputs. Job production suits one-off custom items; batch production suits groups of similar items; mass or flow production suits standardised high volume.
- Marketing identifies customer needs and designs the marketing mix - product, price, place, promotion. Selling is only one part.
- Finance records transactions, manages cash, prepares budgets and reports.
- Human resources handles recruitment, training, motivation, appraisal, health and safety, and statutory payments such as EPF and ETF.
- Purchasing and research and development support these functions.
Worked example
A garment factory receives an order for 5,000 school uniforms in three sizes, to be delivered in six weeks. Job production is too slow and mass production is inflexible for three sizes, so batch production is suitable: each size is a batch, machines are set once per batch, and output matches the order. The marketing mix must also fit: a competitive price, delivery to schools (place), and promotion to parents and school authorities.
Traps
Defining marketing as advertising; choosing mass production for small custom orders; listing functions without explaining them; confusing controlling with directing.