Grade 9 EMS: Business Functions Overview
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gstarraw113Grade 9 EMS: Business Functions Overview
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gstarraw113Grade 9 EMS: Economics & Entrepreneurship
Business Functions
Business functions refer to the various activities and responsibilities that must be fulfilled within
a business in order for the business to achieve its objectives. These functions are essential for a
business to expand and grow.
Eight Business Functions
1. General Management Function: Responsible for setting the vision, mission, goals, and
objectives of the business. It ensures that all other business functions are well-managed.
Three Levels of Management:
Top Level Management: Responsible for strategic decisions.
Middle Level Management: Responsible for tactical decisions; executes top-level
management decisions.
Lower Level Management: Makes day-to-day (operational) decisions.
Characteristics (POLC):
1. Financial Function: Manages all financial activities, including obtaining financing (own capital
and borrow capital), budgeting, recording transactions, and financial analysis.
Monitoring cash flow
Planning
Organizing
Leading
Controlling
Recording income and expenses for budget purposes
Paying taxes
1. Administration Function: Responsible for the collection, processing, and distribution of
information used for decision-making by management.
Answering the telephone
Replying to emails
Planning for day-to-day activities
1. Human Resources Function: Focuses on the well-being of employees and ensures that the
business has enough workers with the right skills.
Fair salaries
Good working conditions
Rewarding excellent work
Recruitment, selection, and induction procedures
Code of conduct
Training
Understanding labor laws
Fringe benefits
1. Marketing Function: Advertises business products and services to create customer desire.
Identifying a target market
Determining goods/services to produce/sell
Planning distribution
Creating marketing campaigns
The Four P's:
1. Public Relations Function: Ensures the business has good publicity and invites society to be
part of its aims.
Improving the business's image
Product
Price
Place
Promotion
Planning and conducting promotional events
Sponsoring events
1. Purchasing Function: Purchases resources needed for production.
Following a purchasing procedure:
1. Departments submit written requests.
2. Purchasing seeks the best prices.
3. Resources are ordered and paid for.
4. Resources arrive and are signed for.
Purchasing raw materials on time
Buying cost-effective raw materials
1. Production Function: Manages all production processes and ensures that good quality goods
are made.
Creating a safe working environment
Implementing quality controls
Testing products
Production Systems
Production systems vary depending on the size of the business and the number of products
made.
1. Batch Production: Produces goods in identical batches.
Example: Packages of cookies
1. Mass Production: Produces a large number of identical products.
Example: Cans of green peas
1. Job Production: Produces goods that are totally different from each other (custom-made).
Example: Building a house
Business Plans
A business plan is a plan of action that turns a business idea into an action plan. It contains
information on where and how the entrepreneur intends to start a business. It should convince
stakeholders that the business will be a success. Stakeholders are people or businesses with a
direct or indirect influence on the business.
Sections of a Business Plan
1. Cover Page:
Name of the business
Owner's name
Address of the business
Contact details
Business's brand or slogan
Date of presentation
1. Table of Contents: Numbered list of sections with page numbers.
2. Vision, Mission, Goals, and Objectives:
Short-term goals
Medium-term goals (6-12 months)
Long-term goals
Objectives should be SMARTER:
1. Description of the Product or Service: Sell the business idea to stakeholders, highlighting what
makes the product or service unique.
Specific
Measurable
Achievable
Realistic
Time-bound
Ethical
Recordable
2. Production System: Specify the production system that will be used (batch, mass, or job
production). Include equipment and materials needed.
3. Marketing Plan: Describes how the business will attract and retain customers.
Market Research: Identify the target market.
The Four P's: Product, Price, Place, Promotion
1. Management Plan: Outlines the structure and staffing needs of the business.
Organogram (visual layout of departments and managers)
Levels of management (top, middle, lower)
1. SWOT Analysis: Analyzes the business's internal strengths and weaknesses, and external
opportunities and threats.
Strengths
Weaknesses
Opportunities
Threats
1. Financial Plan: Details capital required, projected income and expenditure, and growth plans.
Monthly budget
Projected income and expenditure statement
Growth plan
Trade Unions
Trade unions are organized associations of workers formed to protect and further workers' rights
and interests. Trade unions negotiate with employers on behalf of their members regarding
hiring, dismissal, wages, and working conditions.
Functions of Trade Unions
Represent employee rights during disciplinary hearings.
Offer advice on labor legislation.
Participate in collective bargaining.
Negotiate with employers.
Visit the workplace.
Request membership fee deductions.
Call protected legal industrial action.
Responsibilities of Trade Unions
Function as a non-profit organization.
Inform members about how fees are used.
Ensure members follow rules for meetings and elections.
Industrial Action
Industrial action refers to measures taken by workers or employers during a labor dispute.
Legal Strike: A form of protest demanding employers listen to requests, complying with the
Labor Relations Act.
1. Dispute referred to a council or the CCMA.
Steps for a legal strike:
2. Certificate stating dispute remains unresolved.
3. 30 days have passed since referral.
4. 48 hours written notice given to the employer.
Illegal (Wildcat) Strike: A strike that does not follow the legal steps.
Picketing: Workers standing outside the building to protest and gather support.
Go-Slows: Workers intentionally working slowly to affect productivity.
Lockout: A temporary work stoppage initiated by management during a labor dispute.