HERRERA, MARCYLINA ISABELLE A.

BA 11 – FUNCTIONAL AREAS IN BUSINESS

BSTM – 2 OPERATIONS MTWTH (1:00-2:30OPM)
Self-Check Activity

1. What and explain the 4 management categories?

There are 4 categories in business management. These are Planning, Organizing, Leading,

and Controlling. These are vital steps to be taken by a business in order to ensure its

continuous growth.

1.1 Planning – A successful plan must be created by consolidating the overall aim with the

organizational vision, taking into account potential internal and external influences, and

establishing a fast and convenient way to achieving it while keeping resource and

financial constraints in mind. There are 3 types of business planning: Strategic (a plan

for the long run), Tactical (a plan for a year or less – short-term), and Operational

(devised plan for the daily operational activities within the business functions).

1.2 Organizing – After planning, organizing the steps about to be taken to put it into action.

The management have to identify all these necessary steps (taking into account all

precautions and risks), and identify the individuals to be involved that will carry out the

tasks and put required resources to use, while also establishing the levels of authority and

responsibilities of each chosen individual. By doing so, the business can ensure effective

teamwork and delegation of responsibilities and avoid conflicts within the team.

1.3 Leading – This is the motivating and persuading stage that involves both the management

and the employees. Achieving a great business relationship dynamic between the two will

ensure the work being done and therefore, meet the performance standards. It is

important to keep in mind that effective leadership goes beyond assigning tasks and

giving employees instructions.

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HERRERA, MARCYLINA ISABELLE A. BA 11 – FUNCTIONAL AREAS IN BUSINESS
BSTM – 2 OPERATIONS MTWTH (1:00-2:30OPM)
1.4 Controlling – This is when the management monitors performance and progress through

project execution and addressing needed adjustments. This is also when the management

is expected to be proactive in their approach to ensure that the employees are meeting the

deadlines and standards.

2. What is marketing, and why is it important?

The term "marketing" refers to a wide range of activities designed to promote and sell your

goods and services to consumers. Even though advertising is the most popular form of

marketing, it also includes other elements like product design and consumer research. It

compasses not only in determining consumer needs, it also helps create consumer need.

Through marketing do businesses begin to understand consumer needs and predict how

business is going to grow.

3. Discuss the finance function.

The management of the company's funds, the process of obtaining funds for the company, and

the management of how much risk the company should take in order to return an adequate sum

of money to the owner are all responsibilities of the business finance function (s). This

department is also in charge of accurately portraying a company's financial transactions to

internal and external parties, governmental organizations, and owners/investors. They respond to

inquiries regarding the best method of raising capital (loans vs. stocks), the long-term cost of

borrowing capital, and the effects of financing choices on the long-term viability of the company.

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HERRERA, MARCYLINA ISABELLE A. BA 11 – FUNCTIONAL AREAS IN BUSINESS
BSTM – 2 OPERATIONS MTWTH (1:00-2:30OPM)

4. Explain briefly the 4 types of business strategies.

The 4 generic business-level strategies are:

4.1 Cost Leadership (or Low-Cost) – A cost leadership strategy is one in which a company

sells its goods at a lower cost than its rivals. For customers who are price conscious, the

production of standardized goods at low unit costs is prioritized.

4.2 Differentiation – A differentiation strategy is a tactic used by businesses to attract

customers by offering them something distinctively different from what their rivals might

be selling in the market. Increasing competitive advantage is the main goal of

implementing a differentiation strategy.

4.3 Focused-Cost Leadership (or Best-Cost) – Targeting a small market necessitates a

focused cost leadership strategy that relies on price competition. A company that uses this

strategy may not always have the lowest prices in the sector. Instead, it has low prices

compared to rival companies operating in the same market.

4.4 Focused Differentiation (or Market-niche Differentiation) – A focused differentiation

strategy calls for making special offers to a select group of customers. The tactic is also

known as product specialization, niche differentiation, or marketing to specific markets.

5. What are generic strategies and why is there a need to examine them.

These strategies are to be examined by a business because these address the question on how a

business will compete in a specific industry. These make the business realize their competitive

advantage over competitors.

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HERRERA, MARCYLINA ISABELLE A. BA 11 – FUNCTIONAL AREAS IN BUSINESS
BSTM – 2 OPERATIONS MTWTH (1:00-2:30OPM)

6. Why is there a need for strategies to be for a changing world. [Flexible, Adaptable, Anchored

on up-to-date research]

Since the world is continually changing over the years, business should be flexible, adaptable

and anchored on up-to-date research. Making sure that their business is relevant and stays in

correlation with the ever-changing world, they can assure their spot in the business game.

7. Explain each of the key elements needed to devise a good business strategy.

7.1 Leadership Vision – For a business to achieve its goal, both the management and

employees need to have a clear and well-communicated vision. A vision is a distinct,

clear, and focused view of the future, and it is frequently associated with strategic

organizational advancements.

7.2 Culture – By having a positive impact on employees' motivation, mindfulness, and

workplace satisfaction, company culture helps businesses succeed by increasing the

likelihood that they will be performing their best.

7.3 Strategic Marketing Plan – A strategic marketing plan is a detailed blueprint that outlines

your company's current market position, your target market, the marketing mix you'll use

to accomplish your marketing objectives, and—most importantly—how you'll determine

whether it's working or not; thus, having one makes it a very vital piece for a business to

prosper. 

7.4 Management – It takes a capable management team to put your business strategy into

action.

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HERRERA, MARCYLINA ISABELLE A. BA 11 – FUNCTIONAL AREAS IN BUSINESS
BSTM – 2 OPERATIONS MTWTH (1:00-2:30OPM)
7.5 Systems – A business can formulate a set of actions that are most likely to achieve this

advantage using the business system as a framework.

7.6 Resources – Projects are kept on schedule and within budget by making the best use of

available resources. It decreases oversights and double bookings by assisting project

managers in keeping an eye on the project.

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