• Recognize the main functional areas within a business
• Identify the people and activities within each functional area of a business
• Understand the difference between an internal and external stakeholder
• Describe stakeholders’ relationship with business organizations

Management and Operations

This video describes what is now known as the Toyota Production System. TPS is “based on the philosophy of achieving the complete elimination of all waste in the pursit of the most efficient methods.”^[1] This type of approach is often referred to as “lean” manufacturing to enable a business to produce its products cheaper, faster, and better.

You can view the transcript for “How Toyota Changed The Way We Make Things” here (opens in new window).

The management of Toyota observed U.S. manufacturing practices in the 1950s and concluded that they wouldn’t be realistic in Japan because of scarcity of raw materials. However, seeing how U.S. supermarkets operated gave them the idea to implement what would eventually be known as TPS. Because managers are responsible for planning business goals, organizing operations efficiently, controlling activities to ensure goals are met, and leading the organization, the idea to only produce enough parts for the next stage of production was revolutionary.

Toyota altered their operations in response to limitations on supply of inputs. Rather than produce parts that would sit in a warehouse as part of unused inventory, they produced just enough for the next part of the manufacturing process. This “just-in-time” system would later be adopted all over the world.

Marketing/Sales

You can view the transcript for “What is the function of Sales?” here (opens in new window).

Marketing and Sales work closely together but they each focus on slightly different goals. You might associate marketing with social media. Social media, the internet, and other communication methods help a business identify what their customers need, promote their products and services, determine how to best deliver those products and services, as well as setting the best prices.

In contrast, Sales is most focused on “closing” transactions. In other words, Sales is interested in communicating directly with the customer to convince the customer to make the decision to buy the business’ goods or services and finalize that transaction. When the transaction has been finalized, the salesperson has closed the sale.

Finance

You can view the transcript for “Finance vs Accounting” here (opens in new window).

Research and Development

This video illustrates how Nike uses input from athletes in their Research and Development.

You can view the transcript for “Nike Sport Research: The Art of Science” here (opens in new window).

 

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