Functional Planning & Plans
Business Function and Tactical Management Process
The administrative process of selecting among appropriate ways and means of achieving a strategic plan or objective. The use of tactical management in a business environment allows a manager (in a business function area, i.e., marketing) to choose the best tactics or methods for each situation that arises, rather than following a particular standard procedure.
The administrative process of selecting among appropriate ways and means of achieving a strategic plan or objective. The use of tactical management in a business environment allows a manager (in a business function area, i.e., marketing) to choose the best tactics or methods for each situation that arises, rather than following a particular standard procedure.
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Marketing
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Finance
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Human Resource
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Operations
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Sales
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Marketing Management Process
Marketing involves the activities, set of institutions, and processes for creating, communicating, delivering and exchanging offers that have value for customers, clients, partners and society at large. It involves the process of bringing an idea, product or service in front of the buying audience.
Marketing management is 'the art and science of choosing target markets, getting, keeping, and growing customers through creating, delivering, and communicating superior customer value' (Kotler and Keller, 2008: 5). Marketing management is concerned with the development of policies that ensure effective implementation of marketing strategy. Marketing policies ensure for example, that every part of the organization is on board and promoting the organization in a consistent manner. A consistent image is what makes people remember a company.
Marketing Management Functions and Roles
Marketing Management is the process of the acquisition, allocation and utilization of markets through analysis, planning, organizing and controlling programs and initiatives designed to bring about the desired exchanges with target audiences/markets for the purpose of satisfying the needs and wants of the consumers.
Marketing management process involves planning, organizing, directing and executing marketing strategy - the conception, pricing, promotion, and distribution of ideas, goods, and services - to create exchanges that satisfy individual and organizational objectives.
Marketing Functions
Marketing is a business function in a company and its role within the company is to identify and source potentially successful products/services for the marketplace the company operates in and then promote them by differentiating them from similar products. Typical marketing function within an organization might include performing tasks such as: market research, producing a marketing plan, product development, as well as strategically overseeing advertising, promotion, distribution for sale, customer service and public relations, sales and communications.
Distribution
This is the process of deciding how to get goods and services in customers hands. This is about deciding how you will get the goods and services you want to sell to the people who want to buy them. It is an essential function of marketing that ensures the value ends up where you intend it to be. Physically moving and storing goods is part of distribution planning.
Financing
Financing is an important function of marketing. It involves finding the money through investments, loans, or personal capital to finance the creation and advertising of your goods and services.
Market Research and Information Management
Marketing decisions rely on information about customers, trends, and competing products. Gathering this information, storing it, and analyzing it are part of marketing information management. Collecting information is done continually as part of marketing research studies. This is what marketers do to find out about customers, their habits, and attitudes, where they live or work, and what trends there are in the market place.
Pricing
Pricing is one of the functions of marketing that also shows up in the marketing mix. procing decisions dictate how much to charge for goods and services in order to make a profit. Pricing decisions can be based on cost, competitors' prices, and value delivered to customers.
Promotions
Promotion involves advertising your product or service to attract new customers and keep existing customers coming back. It is important to tailor your promotion messages to various communication media such as print, TV, social media, etc.
Product Management
Once you have determined the target market and set the price of product or service, the goal becomes to effectively manage the product or service. This involves listening to customers, responding to their wants, and keeping your products and services fresh and up to date.
Selling
This involves matching products to customers. Selling can happen only after you have determined the wants and needs of your customer base and are able to respond with the right products and services at the right price point and time frame.
Marketing Plan
The marketing plan defines the marketing goals (what the marketing function should achieve) and objectives which state where the company intends to be at some specific time in the future. The corporate objectives which states the intended corporate strategy and offer the main context for the marketing plan is in turn scoped by the corporate mission which provides the context for those marketing objectives.
The purpose of the marketing plan is to describe who your clients are and where they are, and how you can reach them. The marketing plan helps you outline your marketing goals and objectives and help your company understand how to get there. A Marketing Plan consists of several key pieces of information which can be divided into sections based on the organizations preference. The marketing plan goes into the logistical details of executing your strategy such as budgets, more detail time scales for objectives and goals, who in the organization will manage the various points in the strategy, the logistics of various distribution channels and their incumbent costs. etc. At minimum, your plan should include the following:
The marketing plan is a more lively document than your strategy, and will need to be updated more frequently and adjusted to accommodate changes in costings, market conditions, economic conditions and other factors. Monitor the results of marketing activity, and be ready to adapt both your strategy and plan. The marketing plan is vital for small businesses; it help small businesses leverage their resources and audience for maximum impact at minimum cost.
Marketing Mix Decisions
Marketing-mix is an essential tool marketing managers use in building and implementing an effective marketing strategy. Marketing mix is a tactical tool that a company uses to produce a desired response from its target market. These factors include the following:
Goods-Based Marketing Mix
Goods-Based Marketing mix is a combination of factors that can be divided into the following four (4) groups of variables, commonly known as the 4Ps.
The role of marketing in a traditional goods-based marketing is to bridge the gap between production and consumption though the values assigned to the marketing-mix variables.
Service-Based Marketing Mix
Service-Based Marketing mix is a combination of the goods-based factors in addition to the following:
In the service context there isn't a gap between producer and consumer since the service production process occurs right between producer and consumer. The center of the marketing of service is how the service production and service expectation match to each other, so that consumers perceive good service quality and are persuaded to continue coming to get the same service.
Marketing-Mix Factors Design Consideration
Consideration of market-mix factors can be framed in terms of questions to guide answers to issues that help frame strategic decisions in marketing and marketing strategy.
Products and Market Selection Considerations
These are decisions related to what markets the company will serve with products - goods and services. These decisions commit the firm to particular customer groups, specific fields of technology, and certain competitive milieu. These decisions are informed by the following factors - product specification information, estimate of market opinion (assumed value of product/brand to the customer, etc.) and considerations such as:
In marketing, product is what you sell, whether it's physical product or service, idea, or even another person (like in politics) or yourself (when you search for a new job). When you think about changing your product offering to boost sales, you look at anything from new or upgraded products to different packaging to added extras like services or warranties. You can also think about ways to improve quality.
Placement Considerations
These involve decisions about distribution systems and channels such as the firms personal sales force, wholesale distributors, and retail outlets as well as the internet or electronic commerce. Placement is concerned with decisions about communications channels available to marketers such as print media, television, direct mail, telemarketing, trade shows, point-of-sale displays, personal sales forces, and third party influences. These decisions are informed by the following considerations and factors:
Placement is where and when you present your product to customers. You have many options as to how you place the product both in time and space. Placement involves distribution and logistics. Distribution concerns where and when products are offered for sale, whereas, logistics addresses how they get there.
Pricing Decisions
These are decisions informed by interplay of a number of factors such as supply/demand conditions, the firm's production and overhead costs as well as the following considerations:.
In marketing. price is not only the list price or sticker price of a product, but it's also any adjustments to that price, such as discounts and any price-oriented inducements to buy, including coupons, frequency rewards, quantity discounts, and free samples.
Promotion and Communications Considerations
Promotion is all the sales activities, advertising, publicity, special events, displays, signs, Web pages, and other communications designed to inform and persuade people about your product. It is the face of marketing and provides the means/methods to reach out to ask customers for their business. Promotions need to motivate and stimulate people to want to buy. Promotions decisions are informed by the following considerations:
Promotion strategy should provide marketing managers with basic guides for the use and mix of advertising, personal selling, sales promotion, and media selection.
Marketing involves the activities, set of institutions, and processes for creating, communicating, delivering and exchanging offers that have value for customers, clients, partners and society at large. It involves the process of bringing an idea, product or service in front of the buying audience.
Marketing management is 'the art and science of choosing target markets, getting, keeping, and growing customers through creating, delivering, and communicating superior customer value' (Kotler and Keller, 2008: 5). Marketing management is concerned with the development of policies that ensure effective implementation of marketing strategy. Marketing policies ensure for example, that every part of the organization is on board and promoting the organization in a consistent manner. A consistent image is what makes people remember a company.
Marketing Management Functions and Roles
Marketing Management is the process of the acquisition, allocation and utilization of markets through analysis, planning, organizing and controlling programs and initiatives designed to bring about the desired exchanges with target audiences/markets for the purpose of satisfying the needs and wants of the consumers.
- Planning - Planning involves determining and setting marketing objectives, and how to achieve objectives; this includes sales forecast, marketing programs formulation, marketing strategies. The marketing strategy is characterized by the decisions the company needs to make so the marketing tactics and actions work better, and toward achieving the marketing objectives.
- Organizing - The organizing function involves collection and coordination of required means to implement the plan to achieve predetermined objectives. Organizing involves establishing a structure, roles and responsibilities, duties, and position structure reflecting power structure of marketing. It involves coordinating - harmoniously adjusting - the activities of the marketing organization. Organizing also involves staffing - coordination with HR to hire the staff with desired capabilities - skills, knowledge, and competencies.
- Directing - This involves development of new markets, leadership of employees, motivation, inspiration, guiding and supervision of employees.
- Controlling - This refers to the effectiveness of with which a marketing plan is implemented. It involves the determination of standards, evaluation of actual performance, and adoption of corrective measures.
Marketing management process involves planning, organizing, directing and executing marketing strategy - the conception, pricing, promotion, and distribution of ideas, goods, and services - to create exchanges that satisfy individual and organizational objectives.
Marketing Functions
Marketing is a business function in a company and its role within the company is to identify and source potentially successful products/services for the marketplace the company operates in and then promote them by differentiating them from similar products. Typical marketing function within an organization might include performing tasks such as: market research, producing a marketing plan, product development, as well as strategically overseeing advertising, promotion, distribution for sale, customer service and public relations, sales and communications.
Distribution
This is the process of deciding how to get goods and services in customers hands. This is about deciding how you will get the goods and services you want to sell to the people who want to buy them. It is an essential function of marketing that ensures the value ends up where you intend it to be. Physically moving and storing goods is part of distribution planning.
Financing
Financing is an important function of marketing. It involves finding the money through investments, loans, or personal capital to finance the creation and advertising of your goods and services.
Market Research and Information Management
Marketing decisions rely on information about customers, trends, and competing products. Gathering this information, storing it, and analyzing it are part of marketing information management. Collecting information is done continually as part of marketing research studies. This is what marketers do to find out about customers, their habits, and attitudes, where they live or work, and what trends there are in the market place.
Pricing
Pricing is one of the functions of marketing that also shows up in the marketing mix. procing decisions dictate how much to charge for goods and services in order to make a profit. Pricing decisions can be based on cost, competitors' prices, and value delivered to customers.
Promotions
Promotion involves advertising your product or service to attract new customers and keep existing customers coming back. It is important to tailor your promotion messages to various communication media such as print, TV, social media, etc.
Product Management
Once you have determined the target market and set the price of product or service, the goal becomes to effectively manage the product or service. This involves listening to customers, responding to their wants, and keeping your products and services fresh and up to date.
Selling
This involves matching products to customers. Selling can happen only after you have determined the wants and needs of your customer base and are able to respond with the right products and services at the right price point and time frame.
Marketing Plan
The marketing plan defines the marketing goals (what the marketing function should achieve) and objectives which state where the company intends to be at some specific time in the future. The corporate objectives which states the intended corporate strategy and offer the main context for the marketing plan is in turn scoped by the corporate mission which provides the context for those marketing objectives.
The purpose of the marketing plan is to describe who your clients are and where they are, and how you can reach them. The marketing plan helps you outline your marketing goals and objectives and help your company understand how to get there. A Marketing Plan consists of several key pieces of information which can be divided into sections based on the organizations preference. The marketing plan goes into the logistical details of executing your strategy such as budgets, more detail time scales for objectives and goals, who in the organization will manage the various points in the strategy, the logistics of various distribution channels and their incumbent costs. etc. At minimum, your plan should include the following:
- Situational Analysis - This is simply a snapshot of your company's current situation. It comprises a list of the company's strengths, weaknesses, opportunities, and threats. When determining strengths, think what is your company's competitive advantage; in what way is your product/service notable or superior to other products? Do you have access to a more or less untapped market? Are your customers particularly loyal? Is your customer service exemplary" Use a similar process to analyze your weaknesses.
- Target Audience - Identifying your target audience is a discovery process involving some guessing and presumptions, Start by determining their general interest: rock-climbing, cooking, gaming, etc? You should then describe your target audience in terms of demographics (age, sex, earning, religion, etc.), or family composition, or lifestyle (healthy active, sedentary, etc.). Then try to determine their thinking habits. Are they conservative, or modern? Introverted or extroverted? How often do they purchase your product, and in what quantity? Once you determine your target audience you can figure out the best channels to market your business to them.
- Goals and Objectives - Marketing goals are specific objectives described in a marketing plan. These goals can be tasks, quotas, improvements in KPIs, or other performance-based benchmarks used to measure marketing success. When explicitly set, measurable goals are key for marketers to be successful. The information should include time-marked objectives.
- Marketing Strategies - Outline your marketing strategies by describing which methods and outlets you will use to push your products. Are you going to use Digital media, Internet and Social Media networks? If so, which ones? Are you going to use billboards, print media, or radio and TV? Are you going to use relationships marketing such as emails, etc.? Are you going to use word of moth such as referrals, etc.?
- Marketing Mix - Marketing-mix is an essential tool marketing managers use in building and implementing an effective marketing strategy. Marketing mix is a tactical tool that a company uses to produce a desired response from its target market.
- Budgets - Establish a budget for marketing, typically dedicating some percentage of projected gross sales to your monthly or annual marketing budget. For a small business or just starting out this might mean paying out of pocket or borrowing at first.
The marketing plan is a more lively document than your strategy, and will need to be updated more frequently and adjusted to accommodate changes in costings, market conditions, economic conditions and other factors. Monitor the results of marketing activity, and be ready to adapt both your strategy and plan. The marketing plan is vital for small businesses; it help small businesses leverage their resources and audience for maximum impact at minimum cost.
Marketing Mix Decisions
Marketing-mix is an essential tool marketing managers use in building and implementing an effective marketing strategy. Marketing mix is a tactical tool that a company uses to produce a desired response from its target market. These factors include the following:
Goods-Based Marketing Mix
Goods-Based Marketing mix is a combination of factors that can be divided into the following four (4) groups of variables, commonly known as the 4Ps.
- Products/Market Selection - These are the goods and services offered to customers in selected markets to meet their interests or demand. Attributes under consideration include: variety, quality, design, features, brand name, packaging, and services.
- Pricing - The cost people pay for a "product"; provides the means to capture value. Attributes under consideration include list price, discounts, allowance, payment period, and credit terms.
- Place (Distribution) - Home where the "product" resides; this includes Channels of Distribution (or Location Outlets); these define the places where, when and by whom the products and services are delivered to customers. Attributes under consideration include: channels, coverage, assortments, locations, inventory, distribution, transportation, and logistics.
- Promotion (Communication) - "Product" exposure and public relations effort - this includes all the activities which are undertaken to communicate with the customer and increase the sale- such as promotion functions like advertising, sales promotion, personal selling, word of mouth, publicity, etc. Attributes of concern include: advertising, personal selling, sales promotion, public relations.
The role of marketing in a traditional goods-based marketing is to bridge the gap between production and consumption though the values assigned to the marketing-mix variables.
Service-Based Marketing Mix
Service-Based Marketing mix is a combination of the goods-based factors in addition to the following:
- Participants - This refers to the service personnel whose presence and actions define the service that satisfies the wants and needs of the customer/consumer to whom the service is directed.
- Physical Evidence - This defines the physical aspects of the service such as the venue in which the service process occurs.
- Process - This refers to the process by which the service is created and delivered.
In the service context there isn't a gap between producer and consumer since the service production process occurs right between producer and consumer. The center of the marketing of service is how the service production and service expectation match to each other, so that consumers perceive good service quality and are persuaded to continue coming to get the same service.
Marketing-Mix Factors Design Consideration
Consideration of market-mix factors can be framed in terms of questions to guide answers to issues that help frame strategic decisions in marketing and marketing strategy.
Products and Market Selection Considerations
These are decisions related to what markets the company will serve with products - goods and services. These decisions commit the firm to particular customer groups, specific fields of technology, and certain competitive milieu. These decisions are informed by the following factors - product specification information, estimate of market opinion (assumed value of product/brand to the customer, etc.) and considerations such as:
- What does the customer want from the product/service? What needs does it satisfy?
- What features does it have to satisfy these needs? Are there any features we are missing? Are you including costly features that the customer won't actually use?
- How and where will the customer use it?
- What does it look like? How will customers experience it?
- What size(s), color(s), etc., should it be?
- What is it to be called?
- How is it branded?
- How is it differentiated versus our competitors?
- What is the most it can cost to provide and still be sold sufficiently profitably?
In marketing, product is what you sell, whether it's physical product or service, idea, or even another person (like in politics) or yourself (when you search for a new job). When you think about changing your product offering to boost sales, you look at anything from new or upgraded products to different packaging to added extras like services or warranties. You can also think about ways to improve quality.
Placement Considerations
These involve decisions about distribution systems and channels such as the firms personal sales force, wholesale distributors, and retail outlets as well as the internet or electronic commerce. Placement is concerned with decisions about communications channels available to marketers such as print media, television, direct mail, telemarketing, trade shows, point-of-sale displays, personal sales forces, and third party influences. These decisions are informed by the following considerations and factors:
- Where do buyers look for your product or service?
- If they look in a store, what kind? A specialist boutique or in a supermarket, or both? Or online? Or direct, via catalog?
- How can you access the right distribution channels?
- Do you need to use sales force? Or attend trade fairs? Or make online submissions? or send samples to catalog companies?
- What do your competitors do, and how can you learn from that and/or differentiate?
Placement is where and when you present your product to customers. You have many options as to how you place the product both in time and space. Placement involves distribution and logistics. Distribution concerns where and when products are offered for sale, whereas, logistics addresses how they get there.
Pricing Decisions
These are decisions informed by interplay of a number of factors such as supply/demand conditions, the firm's production and overhead costs as well as the following considerations:.
- What is the value of the product - goods or services - to the buyer?
- Are there established price points for products and services in this area?
- Is the customer price sensitive? i.e., what's the bargaining power of customer? What discounts should be offered to trade customers, or to other specific segments of your market?
- How will your price compare with your competitors?
- What's the firm's production
In marketing. price is not only the list price or sticker price of a product, but it's also any adjustments to that price, such as discounts and any price-oriented inducements to buy, including coupons, frequency rewards, quantity discounts, and free samples.
Promotion and Communications Considerations
Promotion is all the sales activities, advertising, publicity, special events, displays, signs, Web pages, and other communications designed to inform and persuade people about your product. It is the face of marketing and provides the means/methods to reach out to ask customers for their business. Promotions need to motivate and stimulate people to want to buy. Promotions decisions are informed by the following considerations:
- Where and when can you get your marketing messages across to your target market?
- Will you reach your audience by advertising online, in the press, on TV, on radio, or on billboards? By using direct marketing mailshots? Through PR? On the internet?
- When is the best time to promote?
- How do your competitors do their promotions? And how does that influence your choice of promotional activity?
Promotion strategy should provide marketing managers with basic guides for the use and mix of advertising, personal selling, sales promotion, and media selection.
Finance Management Process
Finance and Accounting Function is a part of financial management of a company. In business, the finance function involves the acquiring and utilization of funds necessary for efficient operations. The finance function includes the following:
Finance Functions
[TBD]
Strategic Planning and Budgeting
Strategic planning and budgeting allows businesses to develop plans and budgets to inform the decisions of senior management on what actions to take. These plans form the basis of hiring employees, capital spending, raising capital, marketing campaigns and bonuses for management.
Budgeting is the process of allocating financial resources for intended programs, projects, services, and activities to empower the organization to carry out stated goals and objectives.
Capital Management & Tax Planning
This involves methods of funding a company's operations through raising/securing funding, classified into categories based on funding years:
Profit Planning and Cost Controls
Since the basis of a business is to make a profit, its only fair that finance would play a major role in finding ways to improve profitability. This department develops financial statements for revenue, expenses, and capital expenditures, and use these plans to determine profitability of individual products and services.
Accounting and Records Keeping
This aspect of accounting is basically the systematic process of handling all the financial transactions and business records of an organization. It involves book keeping processes that record transactions, keeps financial records, performing auditing, etc. Operations involves the following processes:
Risk Management
Financial analysis informs management decisions on the concerns of the influence of factors such as; direction of interest rates, currency fluctuations, changes in commodity prices and risks that customers will not pay their invoices. Financial reports monitor these areas and give reports to owners and managers.
Accounts Payable and Receivables
[TBD]
Payroll
[TBD]
Financial Management Functions
Financial Management is the activity concerned with the control and planning of financial resources. The managerial functions in the finance department include the planning, organizing, and controlling the financial activities like procurement and utilization of funds. The functions include:
Estimation of Capital Requirements
A finance manager has to make estimation with regards to capital requirements of the company. This will depend on expected costs and profits and future programs and policies of the company.
Determination of Capital composition
This relates to deciding the capital structure. It involves short-term, and long-term debt equity analysis.
Choice of Sources of Funds
This relates to procuring additional funds; the choices include:
Choice of factor will depend on the relative merits and demerits on each source and period of financing.
Investment of Funds
The finance manager has to decide to allocate funds into profitable ventures so that there is safety on investment and regular return is possible.
Disposal of Surplus
This involves net profits decisions made by the manager; and its done in two ways:
Cash Management
The focus is on making sure there is enough money in the company's bank account. This function is concerned with making sure the business has enough liquidity to pay its suppliers and employees on time. If cash is getting tight, the finance people will make arrangements to use the firm's bank line of credit. Conversely, the company should find appropriate investments that produce better return for excess cash sitting in the bank account.
Financial Controls
The finance manager not only has to plan, procure, and utilize the funds but also has to exercise control over finances. This is done through techniques such s ratio analysis, financial forecasting, cost and profit control, etc.
Financial Plans
The financial management is generally concerned with procurement, allocation and control of financial resources of the company.
[TBD]
Finance and Accounting Function is a part of financial management of a company. In business, the finance function involves the acquiring and utilization of funds necessary for efficient operations. The finance function includes the following:
Finance Functions
[TBD]
Strategic Planning and Budgeting
Strategic planning and budgeting allows businesses to develop plans and budgets to inform the decisions of senior management on what actions to take. These plans form the basis of hiring employees, capital spending, raising capital, marketing campaigns and bonuses for management.
Budgeting is the process of allocating financial resources for intended programs, projects, services, and activities to empower the organization to carry out stated goals and objectives.
Capital Management & Tax Planning
This involves methods of funding a company's operations through raising/securing funding, classified into categories based on funding years:
- Long Term Finance - This includes finance of investments three (3) years or more; this financing can be sourced from owner capital, share capital, long-term loans, etc.
- Medium Term Finance - This is financing done between 1 and 3 years; this can be sourced from bank loans and financial institutions.
- Short Term Finance - This is finance needed below one year; funds may be acquired from bank overdrafts, commercial paper, advances from customers, trade credit, etc.
Profit Planning and Cost Controls
Since the basis of a business is to make a profit, its only fair that finance would play a major role in finding ways to improve profitability. This department develops financial statements for revenue, expenses, and capital expenditures, and use these plans to determine profitability of individual products and services.
Accounting and Records Keeping
This aspect of accounting is basically the systematic process of handling all the financial transactions and business records of an organization. It involves book keeping processes that record transactions, keeps financial records, performing auditing, etc. Operations involves the following processes:
- Recording financial transactions and maintaining a journal of those transactions.
- Classifying and separating the records into ledgers.
- Preparing balance sheets and income statements
- Analyzing financial data and records.
- Communicating financial information to management, owners, and other stakeholders.
Risk Management
Financial analysis informs management decisions on the concerns of the influence of factors such as; direction of interest rates, currency fluctuations, changes in commodity prices and risks that customers will not pay their invoices. Financial reports monitor these areas and give reports to owners and managers.
Accounts Payable and Receivables
[TBD]
Payroll
[TBD]
Financial Management Functions
Financial Management is the activity concerned with the control and planning of financial resources. The managerial functions in the finance department include the planning, organizing, and controlling the financial activities like procurement and utilization of funds. The functions include:
Estimation of Capital Requirements
A finance manager has to make estimation with regards to capital requirements of the company. This will depend on expected costs and profits and future programs and policies of the company.
Determination of Capital composition
This relates to deciding the capital structure. It involves short-term, and long-term debt equity analysis.
Choice of Sources of Funds
This relates to procuring additional funds; the choices include:
- Issue of shares and debentures
- Loans from banks and other financial institutions
- Public deposits to be drawn like in form of bonds.
Choice of factor will depend on the relative merits and demerits on each source and period of financing.
Investment of Funds
The finance manager has to decide to allocate funds into profitable ventures so that there is safety on investment and regular return is possible.
Disposal of Surplus
This involves net profits decisions made by the manager; and its done in two ways:
- Dividend declaration
- Retained Earnings
Cash Management
The focus is on making sure there is enough money in the company's bank account. This function is concerned with making sure the business has enough liquidity to pay its suppliers and employees on time. If cash is getting tight, the finance people will make arrangements to use the firm's bank line of credit. Conversely, the company should find appropriate investments that produce better return for excess cash sitting in the bank account.
Financial Controls
The finance manager not only has to plan, procure, and utilize the funds but also has to exercise control over finances. This is done through techniques such s ratio analysis, financial forecasting, cost and profit control, etc.
Financial Plans
The financial management is generally concerned with procurement, allocation and control of financial resources of the company.
[TBD]
Human Resource Management, Process
Management of human resources consist of several inter-related functions. These function are common to all organization though every organization may broadly be classified into two categories: Managerial Function and Operative/Service Function.
Operative and Service Functions
The operative or service functions of human resource management are concerned with specific activities of procuring, developing, compensating and maintaining an efficient work force.
Procurement Function
Procurement is concerned with securing and employing the right kind and proper number of people required to accomplish the organizational objectives. This involves recruiting, selection and on-boarding new employees. The Procurement functions include the following activities:
Development Function
Human resource development is the process of improving the knowledge, skills, aptitudes and values of employees so that they can perform the present and future jobs more effectively. This function compromise the following activities:
Compensation Function
This refers to providing equitable and fair remuneration to employees for their contribution to the attainment of organizational objectives. It consists of the following activities:
Integration Function
The process of reconciling the goals of the organization with those of its members. Integration involves motivating employees through various financial and non-financial incentives, providing job satisfaction, handling employee grievances through formal grievance procedures, collective bargaining, worker’s participation in management, conflict resolution, developing sound human relation, employee counseling, improving quality of work life, etc.
Maintenance Function
This is concerned with protecting and promoting the physical and mental health of employees for this purpose several types of fringe benefit such as housing, medical aid, educational facilities, conveyance facilities, etc. are provided to employees. Social security measures like provident fund, pension, gratuity, maternity benefits, injury/disablement allowance, group insurance, etc. are also arranged.
Managerial Functions
[TBD]
[TBD]
Human Resource Planning
This is about knowing the future needs of the organization. What kinds of people does the organization need, and how many? Knowing this will shape the recruitment, selection, performance management, learning and development, and all other HR functions. Human resource planning, like workforce planning, involves analysis of current capabilities and future needs for the employee population. It involves systematic forecasting of the existing supply of and future demand for employees.; and strategically deploying their skills to meet the goals and objectives of the business.
The goal of HR planning is to ensure an ideal fit between jobs and workers, and circumventing labor shortages and surpluses. Balancing predicted labor markets, analyzing existing labor supply, and forecasting work needs are the three (3) essential components of HR planning.
Recruitment and Selection
This involves attracting people to work for the organization and selecting the best candidates. Attracting people usually starts with an employee brand. Once candidates apply, selection is an HR instrument to pick the best qualified and highest-potential candidates.
Performance Management
Performance management is essential in ensuring that workers stay productive and engaged. Good performance management involves good leadership, clear goal-setting, and open feedback. Performance management is also an instrument to close the gap between the workforce you have today and the one you want to have tomorrow. One of the best ways to build your future workforce is through learning and development (L&D).
Performance management tools include the (bi)annual performance review, in which the employee is reviewed by his/her manager. It also includes 360-degree feedback tools in which peers, managers, subordinates, and sometimes even customers review the employee’s performance. These kinds of tools can be very helpful in providing feedback.
Learning and Development
Enabling employees to develop the skills they need for the future is an essential responsibility for HR. This is also related to the first HR function we listed, in which HR bridges the gap between the workforce today and the workforce needed in the near future.
The human resource management function is about acquiring and managing this important resource, and ensuring that it is developed and sustained. The human resource function and departments of a company has the task of ensuring that the company has the best and effective workforce possible to achieve the mission.
Management of human resources consist of several inter-related functions. These function are common to all organization though every organization may broadly be classified into two categories: Managerial Function and Operative/Service Function.
Operative and Service Functions
The operative or service functions of human resource management are concerned with specific activities of procuring, developing, compensating and maintaining an efficient work force.
Procurement Function
Procurement is concerned with securing and employing the right kind and proper number of people required to accomplish the organizational objectives. This involves recruiting, selection and on-boarding new employees. The Procurement functions include the following activities:
- Job Analysis - The process of studying in a job so as to identify the nature and level of human resources required to perform the job effectively.
- Planning - The process of estimating the present and future manpower requirements of the organization, preparing inventory of present manpower and formulating action programs to bridge the gaps in manpower.
- Recruitment - The process of searching for required human resource and stimulating them to apply for jobs in the organization.
- Hiring - This involves selection, placement and orientation. Selection implies judging the suitability of different candidates for jobs in the organization and choosing the most appropriate people. Placement means assigning suitable jobs to the selected candidates so as to match employee qualifications with job requirements. Orientation involves familiarizing the new employees with the company, the work environment and the existing employees so that the new people feel at home and can start work confidently.
Development Function
Human resource development is the process of improving the knowledge, skills, aptitudes and values of employees so that they can perform the present and future jobs more effectively. This function compromise the following activities:
- Performance Appraisal - This implies systematic evaluation of employees with respect to their performance on the job and their potential for development.
- Training - The process by which employees learn knowledge, skills and attitudes to further organizational and personal goals.
- Executive Development - The process of developing managerial talent through appropriate programs.
- Career Planning and Development - This involves planning the career of employees and implementing career plans so as to fulfill the career aspirations of people.
Compensation Function
This refers to providing equitable and fair remuneration to employees for their contribution to the attainment of organizational objectives. It consists of the following activities:
- Job Evaluation - The process of determining the relative worth of a job.
- Wage and Salary Administration - This implies developing and operating a suitable wage and salary program.
- Bonus - This involves payment of bonus under the Payment of Bonus Act,1965 as well as non-statutory bonus and other incentives.
Integration Function
The process of reconciling the goals of the organization with those of its members. Integration involves motivating employees through various financial and non-financial incentives, providing job satisfaction, handling employee grievances through formal grievance procedures, collective bargaining, worker’s participation in management, conflict resolution, developing sound human relation, employee counseling, improving quality of work life, etc.
Maintenance Function
This is concerned with protecting and promoting the physical and mental health of employees for this purpose several types of fringe benefit such as housing, medical aid, educational facilities, conveyance facilities, etc. are provided to employees. Social security measures like provident fund, pension, gratuity, maternity benefits, injury/disablement allowance, group insurance, etc. are also arranged.
Managerial Functions
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- Talent Acquisition and Hiring - This involves recruiting, selection and on-boarding new employees.
- Compensation Management - This involves setting compensation structures and evaluating competitive pay practices. Payroll can be a component of the compensation and benefits function.
- Benefits Administration - This involves negotiating group health coverage rates with insurers and coordinating activities with the retirement savings administrator.
- Training and Development - This involves providing employees with tools necessary for their success which means giving new employees extensive orientation training to help transition into a new organizational culture. The department may also provide leadership training and professional development.
- Performance Appraisals and Management - []
- Employee and Labor Relations - This is concerned with strengthening the employer-employee relationship through measuring job satisfaction, employee engagement and resolving workplace conflict.
- Compliance Management - This is concerned with compliance with labor and employment laws.
- Workplace and Job Safety - This involves creating a safe work environment and support workplace training, and maintain federally mandated logs for workplace injury and fatality reporting.
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Human Resource Planning
This is about knowing the future needs of the organization. What kinds of people does the organization need, and how many? Knowing this will shape the recruitment, selection, performance management, learning and development, and all other HR functions. Human resource planning, like workforce planning, involves analysis of current capabilities and future needs for the employee population. It involves systematic forecasting of the existing supply of and future demand for employees.; and strategically deploying their skills to meet the goals and objectives of the business.
The goal of HR planning is to ensure an ideal fit between jobs and workers, and circumventing labor shortages and surpluses. Balancing predicted labor markets, analyzing existing labor supply, and forecasting work needs are the three (3) essential components of HR planning.
Recruitment and Selection
This involves attracting people to work for the organization and selecting the best candidates. Attracting people usually starts with an employee brand. Once candidates apply, selection is an HR instrument to pick the best qualified and highest-potential candidates.
Performance Management
Performance management is essential in ensuring that workers stay productive and engaged. Good performance management involves good leadership, clear goal-setting, and open feedback. Performance management is also an instrument to close the gap between the workforce you have today and the one you want to have tomorrow. One of the best ways to build your future workforce is through learning and development (L&D).
Performance management tools include the (bi)annual performance review, in which the employee is reviewed by his/her manager. It also includes 360-degree feedback tools in which peers, managers, subordinates, and sometimes even customers review the employee’s performance. These kinds of tools can be very helpful in providing feedback.
Learning and Development
Enabling employees to develop the skills they need for the future is an essential responsibility for HR. This is also related to the first HR function we listed, in which HR bridges the gap between the workforce today and the workforce needed in the near future.
The human resource management function is about acquiring and managing this important resource, and ensuring that it is developed and sustained. The human resource function and departments of a company has the task of ensuring that the company has the best and effective workforce possible to achieve the mission.
Operations Management Process
Operations management tactical level is one of three (3) levels of operations management. It encompasses the tactics/specific tasks operations management tasks or steps involved in implementing operation strategy.
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These include:
Operations Functions
Operations Management functions are comprised of the following tasks:
Operations management tactical level is one of three (3) levels of operations management. It encompasses the tactics/specific tasks operations management tasks or steps involved in implementing operation strategy.
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These include:
- Product planning - This involves the creation of product plans. The product plan is focused both on creating customer value and realizing the benefits of new products for the firm's investors and stakeholders.
- Marketing Planning - This involves the creation of marketing plans. The marketing plan defines the marketing goals (what the marketing function should achieve) and objectives which state where the company intends to be at some specific time in the future. The corporate objectives which states the intended corporate strategy and offer the main context for the marketing plan is in turn scoped by the corporate mission which provides the context for those marketing objectives.
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Operations Functions
Operations Management functions are comprised of the following tasks:
- Human Resource Management - Human resource is a prime contributor to the success of any service operation. It is also a major cost element due to the labor-intensive nature of service operations. In a service operation, in addition to managing the workforce, there is also the task of managing the customers. Customers are managed as a labor resource, or resource, which flows through the system, thus they have to be trained to behave appropriately. for example, in a super market customers select and carry goods to the checkout, while in a hospital, patients have to go through different departments. The behavior of staff/operators and customers varies dramatically, thus it creates a great challenge in defining standards and ensuring consistency of quality. The tasks in human resource management include: manpower and customer planning, design of job, recruitment, selection and termination, training and development, promotion, motivation, payment and benefits, health and safety, and employee relations.
- Capacity Management - The purpose of capacity management is to match the level of operations with the level of demand so as to find the balance between cost and service levels. This involves two (2) main tasks: (1) considering the factors related to/from medium to long-term demand; (2) developing strategies for the use of resources in order to accommodate changes for short-term demands. There are two main strategies: (1) vary capacity - the capacity is changed to follow changes in demand; (2) manage demand - influence demand to minimize the need to make changes in capacity. The role of demand patterns forecast is very important; the more accurate it is, the better the planning and arrangement of resources of the operation to meet the demand.
- Operations Control - Operations control involves activities concerned with ensuring that the service package is delivered to the customer at the right time and in the right right place. There are two (2) main areas: the receptionist/dispatcher role; and the production control role. The receptionist role associated with contacting and allocating customers, scheduling, and dispatching the service delivery system to customers. Production control role is responsible for activities at the interface between "front office" and the "back office/room". This is the main link between those having high contact with customers in"front office", to those in the "back room" who have little or no contact with customers. This area is very important in ensuring the service-producing unit delivers service packages to the customer as and when they are required or promised.
- Quality Management - Quality management is concerned with quality assurance of total service package. This involves activities and functions including designing,specification,and quality control in order to deliver the service package in a way that meets the customers' expectations.
- Queuing Systems Design - []
- Materials Management - []
- Selection of Site Location - []
- Operations Strategy - []
Sales Management Process
Sales management is defined as the planning, direction, and control of personal selling including recruiting, selecting, equipping, assigning, routing, supervising, paying, and motivating as these tasks apply to personal sales force. Sales management is the planning of a company's sales strategy, and the hiring, training, supervision, and motivation of sales people to carry out those strategies. Sales is the only function in an organization that generates revenue or income for a company and hence it needs to be managed properly.
There are four major functions of sales management:
Sales management methods are conditioned by the nature of individual products or product lines, and by the channels through which selling moves. There is a wide variety in personal preference among sales managers with regard to methods and techniques of organization, motivation and planning. Sales management is assigned the task of managing the personal selling activities, the results of which ultimately affect the marketing department. Sales management specifically contributes to achieve the marketing objectives of a firm. They prepare the sales budget as components of marketing plans, taking in confidence the broad objectives of the marketing department.
Sales Management Tasks
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Sales Organization and Functions
A sales organization has a number of departments. It has a planned and well coordinated structure. It performs the functions of planning, organizing and controlling marketing and distribution of products. Sales organization is a foundation for effective sales planning and sales policies. Systematic execution of plans and policies and programs of a sales organization control all the sales activities. As such it ensures maximum efficiency and profitability without losing consumer service and satisfaction.
Sales Functions
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Selling - Sales Process
Selling is a process involving the interaction of potential "buyer" (Consumer/Business) and a "seller" (person) that represents the company to sell its "products"/"services" to the potential buyer. Sales operations is about supporting and enabling front line sales teams to sell more efficiently and effectively by providing strategic direction and reducing friction in the sales process. To do this, sales operations fulfills both strategic and tactical functions. Sales operations teams accomplish their goals through a variety of roles and function including: strategy, data analysis, hiring and training, forecasting, territory design, and sales process optimization. The Selling process for business-to-consumer or business-to-business involves the following steps:
Sales management is defined as the planning, direction, and control of personal selling including recruiting, selecting, equipping, assigning, routing, supervising, paying, and motivating as these tasks apply to personal sales force. Sales management is the planning of a company's sales strategy, and the hiring, training, supervision, and motivation of sales people to carry out those strategies. Sales is the only function in an organization that generates revenue or income for a company and hence it needs to be managed properly.
There are four major functions of sales management:
- Policy Planning - which establishes a framework of policy within which the sales objectives of a company or institution may be achieved, depending on an individual company’s particular situation,
- Line and Staff Operational Planning - through which procedures are established in advance, against which the quality and quantity of work may be controlled.
- organization - the setting up of a structure of responsibilities and normal interrelations—charting the organization, assigning responsibility, delegating authority, tracing accountability, and clarifying the character of collaboration.
- Administration - by which management meets planned objectives through guidance and evaluation of activity, including Sales Training, Motivation, Coordination, and Execution.
Sales management methods are conditioned by the nature of individual products or product lines, and by the channels through which selling moves. There is a wide variety in personal preference among sales managers with regard to methods and techniques of organization, motivation and planning. Sales management is assigned the task of managing the personal selling activities, the results of which ultimately affect the marketing department. Sales management specifically contributes to achieve the marketing objectives of a firm. They prepare the sales budget as components of marketing plans, taking in confidence the broad objectives of the marketing department.
Sales Management Tasks
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- Setting sales force objectives
- Human resource planning
- Recruitment and selection of salesmen
- Training of sales personnel
- Motivation
- Compensation
- Controlling the sales force
- Organizing and supporting the work of salesman
- Designing sales force objectives
- Supervising and evaluating the sales force.
Sales Organization and Functions
A sales organization has a number of departments. It has a planned and well coordinated structure. It performs the functions of planning, organizing and controlling marketing and distribution of products. Sales organization is a foundation for effective sales planning and sales policies. Systematic execution of plans and policies and programs of a sales organization control all the sales activities. As such it ensures maximum efficiency and profitability without losing consumer service and satisfaction.
Sales Functions
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- Market Research - Study markets thoroughly, including forecasting, intelligence and statistics. Accurate market or sales forecasting and planning the sales campaign, based on relevant data.
- Advertising and Sales - Advertising is the publication of information regarding articles (products) put up for sales and is a method to bring the producer into touch with customers. This informs the customers about the product and the place from where they can get it.
- Sales - All the activities of the Sales department are for selling to earn maximum profit. For this purpose continuous search is made for profitable markets.
- Deciding about prices and terms of sales and pricing policies.
- Packaging for the consumer wants a container which will satisfy his desire for attractive appearance, keeping qualities, utility, and correct price and many other factors.
- Branding the product.
- Deciding the channels of distribution.
- Selection, training and control of salesmen and fixing their remuneration.
- Allocation of Territory and quota-setting.
- Sales programmers and sales promotion activities.
- Order preparation and office recording.
- Preparation of customer’s record cards.
- Scrutiny and recording of reports.
- Study of statistical records and returns.
- Maintenance of salesmen’s records.
Selling - Sales Process
Selling is a process involving the interaction of potential "buyer" (Consumer/Business) and a "seller" (person) that represents the company to sell its "products"/"services" to the potential buyer. Sales operations is about supporting and enabling front line sales teams to sell more efficiently and effectively by providing strategic direction and reducing friction in the sales process. To do this, sales operations fulfills both strategic and tactical functions. Sales operations teams accomplish their goals through a variety of roles and function including: strategy, data analysis, hiring and training, forecasting, territory design, and sales process optimization. The Selling process for business-to-consumer or business-to-business involves the following steps:
- Prospecting - Prospecting is the foundation for the rest of the sales process. It involves research to identify the people or companies that might be interested in the offering (products/services); and the qualifying the potential buyer (prospect). Qualifying involves determining if the potential buyer has the desire and ability to buy the product/service. A prospect is a lead that is qualified; a lead is a potential buyer..
- Preparation - This is the step where the salesperson does their home work in preparation for the next step - Interaction. This requires the salesperson research and collect information that is relevant and pertinent to the buyer's need and ability and help in presentation of the sales pitch.
- Interaction - This is the approach to interaction/engaging the prospect. The step involves the salesperson building trust with the prospect before making the sales pitch in the next step - Presentation..
- Presentation - This is where the sales pitch is made through a presentation that demonstrates understanding of the customer's needs> The presentation should be tailored to the customer, explaining how the product/service meets that person or company's needs.
- Handling objections - These are the concerns that a customer may have after the presentation; a good salesperson will take this as an opportunity to further understand and respond to customer's needs.
- Closing the Sale - You enter this step eventually, if your customer is convinced the product/service will meet their needs. You close by agreeing on the terms of the sale and finishing up the transaction. The important - and sometimes challenging - part of closing is that the seller has to actually ask if the potential customer is willing to make the purchase. When the close is successful, this step clearly aligns with the purchase step in the buying process.
- Follow-up - This is an important step in assuring customer satisfaction, retaining customers, and prospecting for new customers. This might involve sending a thank-you note, contacting the customer to make sure a product was received, or checking in to make sure a service is meeting customer's expectations. From the buyer's perspective, the follow-up is the implementation step in the buying process.
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