Question

importance of 4 segments of the business

Answer 1

The four important segments of the business are Marketing, Finance, Operations, and Human Resources. Their importance is described as below.

The importance of Finance management for a firm is as under:

1. It is used to manage the taxes, asset, and liabilities of the firm in the short and long run.

2. It is helpful in minimizing the financial losses through financial risk management and hence hedge the risks.

3. It is used to manage the regular working capital of the firm which is necessary to maintain the operations of the business.

4. It is used to report the business practices as per the accounting standards to various stakeholders.

The importance of Marketing management for a firm is as under:

1. It is used to create awareness of the new product, existing products and returning products among the customer.

2. It is used to create and manage the demand so that sales can be maximized.

3. It is used as a tool to make sure that the firm is able to maintain a good image as well as is accepted by the recipients.

4. It is used to reach out to target market, big or small so that the customer needs can be catered.

The importance of Human Resource management for a firm is as under:

1. It is helpful in induction and relieving employees in an from the firm as and when required.

2. It is used for performance appraisal for the firm's employees in order to manage their performance an output created by them.

3. It is helpful for maintaining a rich culture and anti-harassment environment for the employees.

4. It is also used in the compensation management of the employees and effective communication pertaining to the same.

The importance of Operations management for a firm is as under:  

1. It is used to manage the smooth production of goods and services for the firm.

2. It also takes care of the quality of production which should be within prescribed limits.

3. It is used for managing the entire supply chain so that every node produces output which is optimum.

4. Its major work lies in managing cost, time, quality and flexibility of operations.

Out of the four, every function of management is unique for the firm's functioning. The firm can't function properly if any one of the above-mentioned domains are absent or are malfunctioning. All the management functions of marketing, finance, HR and operations are responsible for the proper functioning of the firm.