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Unit 7 INTERDEPENDENT NATURE OF BUSINESS - Coggle Diagram
Unit 7 INTERDEPENDENT NATURE OF BUSINESS
Refers to the links between different functional areas of business that affect decision making.
FUNCTIONAL AREAS
Marketing
Anything to do with market research, selling products, promoting and advertising products, identification of market segments
Operations
Anything to do with the production of goods and service, the sales process, the control of quality, working with suppliers and the location of the buisness
Finance
Anything to with the creation and control of profit, the making of revenue and the payment of costs, break-even analysis, cash flow and sources of finance
Human Resources
Anything to do with the workers of the company, including the organisational structure, training and development, motivation and retention, recruitment and selection
RISKS
Financial risks
Possible loss (not making a profit
Possible debt and insolvency
Business failure
Loss of personal wealth and saving
Non-financial risks
Health issues to owners due to stress
Strained relationships with family and friends due to long hours and stress
REWARDS
Financial
Profit making
Wealth creation
Positive cash flow
Non-financial
Satisfaction of running a successful business
Being in charge/ the boss
Being independent
FINANCIAL INFORMATION
Includes information about costs, revenues, profit, rates of return, break-even and cash flow.
Vital to helping make business decisions