Marketing and Production Overview

Marketing

• Marketing is the process of identifying, anticipating, and satisfying customer needs profitably.
• Key concepts include market research (primary and secondary), the marketing mix (4Ps - Product, Price, Place, Promotion), market segmentation, and various strategies.
• Study past paper questions and case studies for deeper understanding of marketing strategies.

Production

• Production is creating goods and services to meet consumer needs.
• Types of production include primary (extracting natural resources), secondary (manufacturing/processing), and tertiary (services).
• Methods of production include job, batch, and mass/flow (continuous) production.
• Quality control and assurance are important aspects of production, ensuring products meet standards.
• Consider how businesses choose production methods and the impact of technology.

Internal Organizational Environment

• The internal organizational environment encompasses the structure, culture, and processes within a business.
• Key areas include organizational structures (tall vs. flat), relationships (line, staff, functional), management functions (planning, organizing, leading, controlling), leadership styles (autocratic, democratic, laissez-faire), communication (formal vs. informal, verbal, written, electronic), and effective communication is crucial.
• Study organizational charts to understand the importance of effective communication within the business.

Establishing a Business

• Steps in setting up a business include identifying a business idea, conducting a feasibility study, choosing a business structure (sole trader, partnership, corporation, cooperative), registering the business (licenses, permits, tax obligations), and sourcing finance (loans, savings, grants).
• Consider the advantages and disadvantages of different business types.

Logistics

• Logistics is the process of planning, implementing, and controlling the movement of goods and services.
• Key components include supply chain management, inventory management, transport and distribution, and warehousing and storage.

Organizational Structures

• Hierarchical (tall) Structure: A pyramid-shaped structure with distinct levels of authority and reporting; higher levels have more decision-making power. Clear chain of command and specialization, but slow decision-making and potentially poor communication.
• Flat Structure: Fewer levels of management, more responsibility and decision-making power for employees. Faster decision-making and improved communication, but can be challenging to manage in larger businesses. Efficient teamwork and quicker response times, but less supervision.
• Functional Structure: Grouping employees based on their functions (e.g., marketing, finance, HR). Common in large organizations. Efficient use of specialized skills, but potentially less collaboration across departments.
• Matrix Structure: Employees report to multiple managers, often for specific projects. Useful in project-based businesses (e.g., construction, IT). However, managing multiple reporting lines can be confusing. Cross-department teamwork, effective use of project-focused employees.
• Line and Staff Structure: Line managers make decisions directly, staff managers provide support (e.g., HR, legal). Clear lines of authority but potential overlap in responsibilities. Supports effective execution of organizational plans.

Business Functions

• Marketing: Promotes the business, attracts customers, through market research and strategies. Importance for business success.
• Finance: Manages money and resources, handles budgeting, keeping records, and securing investments. Crucial for the financial health of the business.
• Human Resources (HR): Manages employee relations, training, and workplace conditions. Ensures the business has skilled staff and a positive work environment.
• Production: Creates goods and services, manages raw materials, production schedules, and quality control. Ensures good product quality and timing.
• Customer Service: Supports customers and addresses complaints. Improves customer satisfaction and builds positive customer relationships.
• Research & development: Improves existing products or creates new ones. Crucial for maintaining competitiveness and growth in the business.