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What are core business functions

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Core business functions are the essential activities that a company must perform to operate effectively and achieve its goals. These functions are critical to the business's success and typically include the following:

  1. Operations: This involves the day-to-day activities required to produce goods or services. It includes production, quality control, inventory management, and logistics.

  2. Finance and Accounting: This function manages the company's financial resources, including budgeting, forecasting, financial reporting, and managing cash flow. It also involves ensuring compliance with financial regulations and managing investments.

  3. Marketing and Sales: Responsible for promoting the business and its products or services, this function includes market research, advertising, branding, sales strategies, and customer relationship management.

  4. Human Resources (HR): This function focuses on recruiting, training, managing, and retaining employees. It also includes handling employee relations, compliance with labor laws, and benefits administration.

  5. Customer Service: Engaging with customers before, during, and after the sale to ensure satisfaction and address any issues. This function is crucial for building customer loyalty and managing the brand's reputation.

  6. Research and Development (R&D): In companies that rely on innovation, R&D is vital for developing new products or services, improving existing offerings, and sustaining competitive advantage.

  7. Information Technology (IT): Managing technology resources and systems, ensuring they support the organization's goals and operations. This includes software, hardware, data management, and cybersecurity.

  8. Strategic Planning: This function involves setting long-term goals and determining the best strategies to achieve them, which may include market analysis, competitive analysis, and resource allocation.

These core functions may vary in relevance and structure depending on the industry and size of the organization. However, all businesses generally perform these fundamental activities to thrive and grow.