Functional areas show the different parts of the organisation and the employees that work in different parts.
In Tesco there are several employees who have job ethics that work together to complete the main aims of the business. They get their raw supplies from certain countries such as: USA, Germany, Sweden and France. They check the final product and then distribute it. Functional areas of a business mean that there is a special job or role in one sector of the business. The main functional areas of Tesco are:• The finance department• Human resources• Finance and accounts• Administration and IT • Marketing• Sales• Customer services The finance department takes part in some certain activities such as recording the business transactions and finding out if Tesco is making a profit or a loss. For example, by checking a sales revenue or a balance sheet. This implies that if the business has made a profit or a loss over a certain period of time financially.
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The picture below shows an example of a profit and loss account.