INTRODUCTIONTO FUNCTIONAL AREAS

OF MANAGEMENT

MARKETING MANAGEMENT

Marketing management is the functional area that is closest to customers. Its activities relate to identifying customers’ needs and interpret these back to enterprise for its business reaction.

Marketing Management Areas:

Product and/or service planning Pricing

DistributionPromotions

Market ResearchCustomer Service

Marketing managers are tasked to meet the

key objective of 3Csof marketing as follows.

Customers Competition

Company

• To satisfy the needs, the wants, and the expectations of the target customers.

• To outperform competition; and• To ensure corporate health and profit

OPERATIONS MANAGEMENT

HEIZER (2008)

Design of goods and servicesQuality Management

Process StrategyLocation Strategies

1

2

3

4

Layout StrategiesHuman Resources

Supply Chain ManagementInventory Management

5

6

7

8

Scheduling

Maintenance

9

10

• Deals with the formal systems (Bateman and Snell, 2008).

• In the past, HRM was called Personnel management.

• Financial statements attest to this declaration

HUMAN RESOURCES MANAGEMENT (HRM)

The highest cost percentages are attributed to salaries, wages, and

benefits of personnel.

• Labor planning and job design are required for competitive advantage

Competitive Advantage Strategy

Should ensure that people…

Are efficiency utilized within the

constraints of other operations

management decisions

1. Have areasonable quality of work life in an atmosphere of

mutual commitment and trust

2.

FINANCIAL MANAGEMENT

Financial Officers in the Organization

In small organizations, the chief financial officer is in direct charge of cash, credit and accounting.

TREASURER CONTROLLER/COMPTROLLER

Determines fund requirements

Takes care of Budget

Procures Funds Plans for control

Manages cash Takes care of system installation

Is the custodian of funds Evaluates objectives, policies, and procedures.

Handles foreign exchange concerns

Reports and interprets result of operation and financial position.

Takes care of bank relations Reports to government entities.

TREASURER CONTROLLER/COMPTROLLER

Takes care of investor relations

Administer taxes

Takes care of corporate investments

Scans environment

Takes care credit and collection

Protects resources

Takes care of insurance Consults and coordinates with other department

Takes care of employee benefits

Financial AnalysisFUNCTIONS:

1. Guidance and analysis in making investment decision to business and individual.

2. Gathers financial information, analyses, and makes recommendation

3. Assesses the economic performance of companies and industries;4. Analyzes the ff: commodity prices, sales, costs, expenses and tax

rates to determine the values and project future earnings of the company;

5. Evaluates ability of companies to repay debts; and6. Programs, budgets, costs, and analyses credit.

Financial Analysis

VQUALIFICATIONS:• Mathematics skills• Problem solving skills,• Good oral and written communication skills• People skills.

He/she should be• Confident• Mature• Independent• Good moral character

Question to be answered by the Finance Person:

1. How much cash should be held?2. Should we invest in securities?3. Should we sell on cash or on account basis?4. How much inventory should be held?5. Should we invest in long term investments?6. How much should we invest in property, plant, and

equipment (PPE)?7. Should we lease or purchase?8. Should we purchase or develop?9. Can we hold prepayments to a minimum?10. Should we purchase in cash or in credit terms? What are the

best terms?

Question to be answered by the Finance Person:

11. Are tax remittances on time?12. Which loan terms should we choose?13. What types of short-term financing are available?14. Should we choose short- or long-term financing ?15. What are the available bonds?16. Which types of ownership should we choose?17. How much should be financed by the owners?

The aforementioned questions can be grouped into question.

(1) Capital Budgeting(2) Capital Structure(3) Working Capital Management

COST BENEFIT RELATIONSHIP is important to capital budgeting.

CAPITAL STRUCTURE consists of Debt Financing, or money requirements from creditors and equity financing, or money requirements from the business owners. A common form of debt financing is the floating of bonds.