Functions of an organization nFormulation functions of an organization nServices and their specifics nProduction and its contents nSales and its contents nInvesting and financing nRelationship between production, sales, investment and financing Formulation functions of an organization nFunctions of an organization nPrimary nProduction, sale, supply (purchase, transport, storage) nSupporting nPersonnel, investment, financial, administration Primary functions of an organization Primary functions of an organization Organizational department Production Accommodation section -bed section (own accommodation) Food section -catering services (production) Sales Business section -sales department -marketing department Food section -catering services (sales) Accomodation section -reception Supply Business section -department for purchasing raw materials, materials and goods -warehousing department Supporting functions of an orgnization Supporting functions of an orgnization Organizational department Personnel Economic section -personnel department Investment Economic section -budget department Financial Economic section -budget department Administration Economic section -accounting department Technical section -IT department Staff units withing individual department and GM Services and their specifics nA service is any activity or benefit that one party may offer the other and which is essentially immaterial and does not bring ownership. n nFive main service characteristics can be defined: nIntagibility - can not be exposed, can not be seen, tasted or touched. As a result, when purchasing services, there is a great deal of uncertainty on the part of customers who are looking for some quality signals nInseparability - they can not be separated from their providers, whether people or machines. Due to the presence of a customer in the production of the service, there is an interaction between the customer and the service provider. Service is provided and consumed, that it can not be stored. nVariability - the quality of services depends on where, where, how, and by who they are provided. This makes it difficult to control the quality of services, which always depends on employee behavior. nPerishability - can not be stored for later sale or use. This can cause major problems to the organization at a time when demand for services is not constant but fluctuating. nAbsence of ownership - can not own it, you can not gain personal access for an indefinite period of time. As a result, service providers need to strengthen brand identity and customer friendliness. The term production n 1.Every function of an organization nevery combination of production factors 2.Organization performances nincludes basic functions of an organization without sales function 3.Fabrication nfactory production, manufacturing •mangement • •R&D •material •and services •labor •investments •information •products •assortment •sales •production •supply •financing •capital • •sales market • • • •production process • • • •buying market •capital market •Position of production within other functions of an organization The term sales and its meaning nMarket operation = continuous process of creating and capitalizing on outputs. nCreating outputs = acquiring production factors and processing them into products and services. nOutputs monetizing= customer search and physical distribution of products. nValue cycle: nmoney à production factors à products à money Sales function of an organization nMarket Economy - The organization (entreprise) freely decides and plans: nwhat, nin what amounts, nat what price nand to whom sells. Sales function of an organization 1)Sales planning is oriented towards the goals of an organization. 2)Planned action requires detailed knowledge of the sales market, ie customers, their wishes and their competitors. 3)An organization's market position is not permanent, organizations need to acquire and defend markets. For that purpose, it uses sales policy tools: nproduct policy, npricing policy, ncommunication policy, ndistribution policy. Sales policy tools • • •Sales policy •tools The goals of sales policy nThe behavior of an organization is influenced by the organization‘s goal orientation. n nThe purpose of sales planning is: ndetermination of offered assortment nforecast sales amount nforecast of price development n nFormulating the system of goals is based on: nown ideas and wishes, nown options and nenvironmental conditions. The terms investment and financing nfinancing = procurement of capital, expressed in the liabilities of the balance sheet ninvestment = use of funds to acquire tangible assets, intangible assets and financial assets n nFinancing: nin the narrow sense of the word (procurement of capital) nin the broader sense (+ procurement in capital areas necessary for the realization of business activities) nin the broadest sense (+ ensuring extraordinary measures) Types of financing nCapital transformations: na conversion of a foreign capital into equity na conversion of equity into a foreign capital na conversion of one kind of foreign capital into another kind na conversion of one type of equity into another kind nFor the systematization of types of financing, the following criteria can be used: 1.origin of capital (external-internal) 2.the legal position of the originator of the capital (own-foreign) 3.influence on equity and capital structure 4.disposition period (unlimited, long-term, short-term) 5.the cause of financing (establishment of a company, increase of capital, merger, change of legal form, rehabilitation) Breakdown by source of capital •Financing •EXTERNAL •INTERNAL •Increase in assets •Increase in assets •Increase in assets structure •Credit financing •Financing from deposits and interests •Financing from profit (self-financing) •Financing from long-term reserves •Financing of investment revenues •Financing of net invesments from revenues Breakdown by legal status of the depositor •Financing •own •foreign •capital deposits and interests •profit (self-financing) •changes in assets structure •credits •long-term reserves •external financing •internal financing Breakdown by influence on asset and capital section •acquisition and use of capital •increase of balance total •decrease of balance total •change in assets (internal financing) •change in liabilities (re-financing) •external financing •internal financing •capital deposits, interests and financing from external sources •self-financing •payment of equity and foreign capital •payouts dividends •loss •finacing from external reserves •reinvest-ment •net investment •E à FC •FC à E •E à FC •FC à FC Types of investment •Investment •Financial investment •Material investment •Intangible investment •Grounds •Interests/shares •Receivables •Buildings •Structures •Machines •Supplies •Bought services •Science, reserch and development •Adverti- •sment •Education •Social services Breakdown of investments in terms of their value in one period •Gross investments •Rationalization investments •Renewable investments (reinvestments) •Net investments (establishing an organization, expanding) Relation of production to sales, investment and financing n nThree areas of processes in an organization: nproduction, nsales, nfinancing and investment.