The business organization tries to profit maximize by providing the proper utility of goods.
As a business owner, the businessman earns a profit by providing goods, service, ideas etc.
The business organizations have to do these works for earning more profit and for doing these things the Functions of Business is giving below.
A. Production Oriented Functions
Business creates a utility from fewer assets and takes the proper changes of utilizing assets.
1. Purchase: Business functions are related to functions of purchasing management. If your functions of purchasing remain good, everything will remind good in your business.
2. Creation of Form Utility: Business functions make business suitable for human consumption. In a business concept, form utility might involve in making a product ready for consumption of customers.
B. Distribution Oriented Functions
The distribution function is some functions that may be used to define a particular distribution. Such as,
1. Selling: The goods that are produced by the business organization is selling to the customer with an exchange of money. It is a regular task for a business to producing quality goods and selling to the customer these goods.
2. Transporting: Goods that produced in one place is reached the other place to the final consumer by a businessman. So, it is said that the goods and service get increases mobility through transporting.
3. Warehousing: We know that many goods are produced in a specific time and they can proper preservation. The provision may at different times by proper preservation.
4. Banking: In business, it is required a lot of money for operating properly. Bank saves money and creates capital.
5. Taking Risk: This is common for every business case that wasting of goods, stealing, decreasing demand etc. These are the risks in Business organization. By doing insurance, they can reduce these risks in business.
6. Advertising: Advertising is important because the business functions of advertising have a lot of needed. It helps the business organization to communicate to customers and it helps in building strong relationships.
7. Packaging: Packaging assists to customers for identification of a product. A company package products for making attractive goods and doing well from the competitors.
8. Standardizing and Grading: Standardization plays an important role in business functions. The goods are standardized and graded because of customers who are living far from the seller can buy goods only by seeing a sample of goods.
C. Other Functions
Without production and distribution, a business has to be maintaining a lot of others functions. These business functions are given below.
1. Research: Research in business functions is to reading, viewing and listening on a daily basis for searching the potentiality of business ideas. Research has to be done on goods and market.
2. Development: The business organization has to increase their organizational development such as customers demand, customers taste and competition etc. Organization should analyze for developing of their goods, distribution process and competition market.
3. Book Keeping: Bookkeeping is one of the most required tasks for any kind of business. A business keeps their record on bookkeeping such as buy-sell, income-loss, assets-liability etc.
4. Office Functions: There are many official functions happened in a business such as writing or recording importance file, book-keeping, filing, and typing etc.
5. Marketing Promotion: Marketing promotion is done by business for promoting their products. Marketing promoting goes hand in hand to a business organization.
6. Social Development: Business organizations have to do different types of social welfare out from their business work.
A business organization does many things to be successful. They have to do their business functions nicely for achieving a state in the social life.
On the other hand, a successful business established only when all necessary functions are done properly. The funtions are called as business funtion.
