What are the main functions of business organizations?

Answer 1

Business organizations are group of people intentionally organized to accomplish an overall, common goal or set of goals.
relationship between procurement and other functions of an organisation
Many will agree, that main function of a business organisation is to maximise profits. This is true to a certain degree, but many well known and also profitable business organisations do some fundamental things very well. They are,

1. Having a solid product portfolio and sustaining the same with competitive quality and pricing.

2. having an eye on innovations and products for future need / requirements.

3. Keeping Human Resources / employees / suppliers/ buyers; happy and rewarding them for their performances. as regards to the employees- they are the people who make the organisation complete. so they should be handled with care. Give responsibilities and powers to execute it. If they do well; reward them. Invest in training.

4. Sustaining the above three points without fail. Resulting in profits.

5. Should have a good cash flow in the business, having enough General Reserves for innovations- new products- reward programmes, having a good credit rating with financial institutions.

6. Marketing, sales, sales-support and Finance functions should be handled carefully and there should always be room for rookie ideas to pour in. No harm in having fresh ideas.

any company that does the above, are successful companies. You will find a lot of companies doing these simple things well. Hence their Balance sheet is always in "handsome Black".