INTRODUCTION

TO FUNCTIONAL AREAS
OF MANAGEMENT
 MARKETING MANAGEMENT

Marketing management is the functional

area that is closest to customers. Its activities
relate to identifying customers’ needs and
interpret these back to enterprise for its
business reaction.
Marketing Management Areas:
 Marketing managers
are tasked to meet the
key objective of 3Cs
of marketing as follows.

• To satisfy the needs, the wants, and the expectations of

the target customers.
• To outperform competition; and
• To ensure corporate health and profit
 OPERATIONS MANAGEMENT

HEIZER (2008)

4
5

10
 HUMAN RESOURCES
MANAGEMENT (HRM)
• Deals with the formal systems (Bateman and
Snell, 2008).
• In the past, HRM was called Personnel
management.
• Financial statements attest to this declaration
• Labor planning and job design are required for
competitive advantage
Competitive Advantage Strategy

Should ensure that people…

 FINANCIAL MANAGEMENT

Financial Officers in the Organization

In small organizations, the chief financial officer is

in direct charge of cash, credit and accounting.
 TREASURER CONTROLLER/
COMPTROLLER
Determines fund Takes care of Budget
requirements
Procures Funds Plans for control

Manages cash Takes care of system

Is the custodian of funds
Handles foreign exchange
concerns
Takes care of bank relations
installation
Evaluates objectives, policies,
and procedures.
Reports and interprets result
of operation and financial
position.
Reports to government
entities.
 TREASURER CONTROLLER/
COMPTROLLER
Takes care of investor Administer taxes
relations
Takes care of corporate Scans environment
investments
Takes care credit and Protects resources
collection
Takes care of insurance Consults and coordinates with
other department
Takes care of employee
benefits
 Financial Analysis
FUNCTIONS:

1. Guidance and analysis in making investment decision to business

and individual.
2. Gathers financial information, analyses, and makes
recommendation
3. Assesses the economic performance of companies and industries;
4. Analyzes the ff: commodity prices, sales, costs, expenses and tax
rates to determine the values and project future earnings of the
company;
5. Evaluates ability of companies to repay debts; and
6. Programs, budgets, costs, and analyses credit.
 V
QUALIFICATIONS:
• Mathematics skills
• Problem solving skills,
• Good oral and written communication skills
• People skills.
He/she should be
• Confident
• Mature
• Independent
• Good moral character
Question
Question to
to be
be answered
answered by
by the
the Finance
Finance Person:
Person:

11.
1. Are
Howtax remittances
much on time?
cash should be held?
12.
2. Which
Shouldloan termsinshould
we invest we choose?
securities?
13.
3. What
Shouldtypes of short-term
we sell on cash or financing
on accountarebasis?
available?
14.
4. Should
How muchwe choose
inventoryshort- or long-term
should be held? financing ?
15.
5. What
Shouldare
wethe available
invest in longbonds?
term investments?
16.
6. Which typesshould
How much of ownership
we invest should we choose?
in property, plant, and
17. How much should
equipment (PPE)? be financed by the owners?
7. Should we lease or purchase?
8. Should we purchase or develop?
9. Can we hold prepayments to a minimum?
10. Should we purchase in cash or in credit terms? What are the
best terms?
 The aforementioned questions can be grouped into
question.
(1) Capital Budgeting
(2) Capital Structure
(3) Working Capital Management

COST BENEFIT RELATIONSHIP is important to capital budgeting.

CAPITAL STRUCTURE consists of Debt Financing, or money

requirements from creditors and equity financing, or money
requirements from the business owners. A common form of
debt financing is the floating of bonds.