Management of Business Functions - Essay Example

Management of business functions Introduction Management in any organization is the coordination of various activities torealize the company goals and objectives. It is divided into two i.e. management that are nonprofit for example staffing, organizing, coordinating and planning while the other is a profit maximizing oriented and includes financial management, marketing, corporate responsibilities, information management, management of infrastructure projects, human resources and strategic planning. Financial management involves taking administration of the organization funds and resources to avoid misappropriation of any given resource ensuring that the capital finance is only used for the planned purpose. Corporate responsibility are the obligation on how the company relates to the consumers or the entire public to keep up the good image. On the other hand marketing management make sure the corporate goods are competitive and sold at favorable prices so that the organization product can be profitable (Tosi, 2009). Human resource is the labor that the organization employs in its productivity to produce the goods and services. Moreover the organization must have a strategic planning that helps to formulate future plans and checks if the company is moving in the right direction so that it maintains its priority minimizing deviations from the core values. Coca cola is the largest beverage company in provision of the nonalcoholic drinks like sprite, Fanta and other soft drinks for instance water, juices and many more. The company headquarters is based in the UK and operates in the whole world and since it affects the consumers either indirect or directly, it participates in various society improving issues like health care, improving of living standards, environmental conservations just to mention but a few (Tosi, 2009). This welfare improvement standards are provided in the prices that are set by society requirement in social costs that are equal to social benefits of the company hence it has an external and internal corporate responsibility. External responsibilities. The company uses water as its major input requirement in the provision of the goods and services. Thus, the company has taken a social responsibility in maintaining and improving the water facility in its environments so as to reduce its depletion. This is shown by committing 30 billion US dollars to projects in clean water around the African region since it is like a basic requirement to human ( Lawler& Boudreau,2009). This ensures adequate supplies of the resource and reducing over dependencies on the natural water providers like rivers, lakes etc. which may hinder the habitat for other animals like fish. The company provides employment to many people in different countries. In many economies, unemployment is a major challenge that every government must have in its objectives to address more so in the developing countries where it is at high rate. Hence through the company innovations and expansionary policies, it does create many opportunities to absorb many individuals who are engaged in income generating activities so that they can cater for their needs. Provision of employment increase money supply in the economy making a countries goods and services from other sectors to have an already domestic market improving the growth rate hence a higher GDP, hence the organization does help in economic development. (Aldag & Kuzuhara, 2002). Health care is a key area that must be taken care of by any corporate entity. Many diseases are cropping up living many dead while others like HIV continue to threaten the world population in the coming days. As a result urgency is needed in their control as population plays a major role in the company development and development of the economy. Due to the large capital required in this sector to manage and reduce diseases, there is need for corporation among various organizations to fight the menace. The organization through its managers collaborates with numerous entities for instance, the company collaborates with USAID in fighting diseases like HIV, ensures drugs reach remote areas and provides clean water to reduce diseases like cholera since an economy encrypted by diseases is more likely to fail. Control and management of health hazards ensures reliability in production as no paralysis will result due to labor failure while adequate consumption is also maintained hence ready market for various products. Natural calamities are unforeseen scenarios that do require immediate response by both the government and the existing entities in a country or a region. (Lawler& Boudreau, 2009). They include flooding, earthquakes, hunger, drought etc. there occurrence needs unification of everyone so as to rescue the victims and cannot be left to either the private or public sect alone. Coca-Cola organization do come up in this times to help the society as in the case when they contributed approximately 2 million dollars to help the flood victims, 2.5 million dollars in relief foods and many more. This happenings if left unattended to may affect the economy negatively as they destroy the existing and implemented projects resulting to the diversification of the already planned resources to other sectors and the economy might not achieve its objectives and it is only vital for the corporate sect to help in their management and provision of solutions by advising and financing appropriately. The organization is also committed to the general welfare of the economy at both the national and household level. At the national level, the company advices the government and the general public on areas of investment where necessary and contributes taxes which enables the state to collect required revenue to meet its objectives in achieving the needed economic growth. Women and girls are empowered in many countries more so in Africa to reduce the disparities in gender contributing to equity in society (Lawler& Boudreau, 2009). Distribution of wealth among the genders acts as security to families and increases the purchasing power of the country leading to improvement of living standards of the entire population. Internal responsibility. The organization has a responsibility to charge prices that do not harm the consumers. The company sets its prices that are socially optimal and not on the basis of MC=MR so that everyone can afford the commodity at ease. Higher prices exploits the consumers and the organization benefits more reducing the welfare of the consumer. The organization takes the responsibility of taking care of its employees in numerous ways. The labors are compensated in form of salaries for their efforts which also acts as a motivation to them. The company also ensures that all his members live in good houses and are able to access the basic health care. This is taken care of since all the employees are insured against risk of health and provided by basic house allowances. The labors are also provided by financial securities in the future in case they retire through contributing for them to their social security fund scheme (Tosi, 2009). This measures improves the general welfare of the employees which translates into hard work within them increasing productivity. Coca-Cola has an obligation in a fair deal with all his clients be it creditors or the general policy issued by the state. The business entity has supplies that brings unto it inputs and distributors of its final products into the market since without them the business cannot function. Hence the organization is liable to pay them for the service they are offering and in turn be serviced as it would require. This prevents inefficiencies that would be caused by any of them resulting to a smooth running of the organization and keeping up with the market demand. The organization is also responsible to the board of directors and the shareholders. This group acts as the owners of the organization and the management must be accountable to them for any action and decisions made within the company. Shareholders put their money into the company and expects to get good returns. (Lawler& Boudreau, 2009). They would adore to see their value of money rising. Thus in case of any loss or the shareholders do not receive dividends on any financial year, the management must be liable and provide explanations as to why it happened, providing information that is satisfactorily to them. On the other hand, the board makes good decisions on behalf of the company and if not implemented, then the management should provide a reason. Management theory are the set rules and principals that are meant to help in the management of any organization. They make planning, control, organizing and leadership to be practiced and implemented with ease since it provides a guideline to be followed in any organization. The system management theory do fit in the management system of the coca cola organization. This theory postulates that an organization comprise various parts and must perform task necessary for the survival and functioning of the system as a whole. The theory clearly states that the organization does not exist alone in its environment of operations but comprises of the society in which it operates, employees, suppliers who must work hand in hand for the success of the organization (Tosi, 2009). For instance, there would be no production without the labors, consumers must exist so as to provide the market for the organization goods, favorable environment must be ensured by the society and the organization would also require inputs to produce output so as to achieving its objectives. However inputs won’t be there for free, for the organization to get them it would require an exchange while the environments of operations won’t be favorable for the humans hence compensation is necessary. Thus the entire system must work together for the betterment of the society. However in providing this function to the organization, all sectors in the system will be responsible either in production of the basic good are pay inform of high prices. The corporate responsibilities are incurred at a cost by the organization. When this costs are high, the production of the units are expensive, thus the organization would want to be compensated for the service. This forces the company to pass this burden to the consumers of its products in form of high prices and hence will charge a social price that equates social benefits to social cost since it will only be based on optimum social levels of the economy. The government policy may be also to force organizations to be responsible for their actions in the society. Such a policy will make the organization to spend more even if they are doing poorly economically and as a result the organization would make losses and may be forced out of operations which will result in low production in an economy, high unemployment rate hence increasing poverty levels (Tosi, 2009). Hence unless the state lifts such a policy the functions of the organization would only be to pursue its core objectives. Corporate social responsibility is as a result of externalities that are created by the organization in an attempt in pursuing goals and objectives hence resulting to inefficiencies in the welfare of the consumers and would require a compensation. However the consumers are in large numbers and meeting the responsibility for all may be difficult. Thus only a few would be compensated or taken care of making majority not to be compensated. Conclusion Business functions are key to the success of any organization. This functions are closely related and if well managed and coordinated, the business performance can greatly improve. It is also vital for the organization to take responsibility of its actions so as to operate at socially optimal level while maintaining a good public image with the consumers of its products since the population plays a vibrant role in the success of the union as they act as the market for various products that the company produces. Thus it is important for the organization to keep good relations with both the state and consumers. References Aldag, R. J., & Kuzuhara, L. W. (2002). Organizational behavior and management: an integrated skills approach. Australia: South-Western/Thomson Learning. Lawler, E. E., & Boudreau, J. W. (2009). Achieving excellence in human resources management: an assessment of human resource functions. Stanford, Calif.: Stanford Business Books. McCalley, R. W. (2002). Patterns of management power. Westport, Conn.: Quorum Books. Tosi, H. L. (2009). Theories of organization. Los Angeles: SAGE Tropman, J. E. (1998). The management of ideas in the creating organization. Westport, Conn.: Quorum Books. Read More