Functional Areas Communicate
A sole trader has to check his shop for health and safety, e.g. check milk date every morning, check if any food is damp and not out of date. If he sells out of date food then that’s unhygienic and could cause diseases to customers and then he could be sued. He has to make sure he throws out the rubbish himself out side in the bin and not in the shop, also he has to see if there any food lying around in the shop corners which will then cause rats and mice’s to come.
How Changes In Consumer Spending Effects The Main Activity Sainsbury’s The consumer spending affects the main activity in many different ways. If the consumer was spending no money at Sainsbury’s then Sainsbury’s would be loosing money because their foods would go out of date and then nobody would buy it at all, their use of electricity would cost them and they wont have any money coming to pay it off. The employees would get fewer hours to work because they won’t have enough money to pay them.
Newsagent The consumer spending would affect the sloe trader in the same ways, he would be loosing money if nobody brought products from his shop, the foods would go to waste and he’ll loose money. He also would need money to pay the electricity bill for the shop which he won’t be able to because he won’t have any money coming in. How Functional Areas Communicate With Each Other Sainsbury’s In the functional areas people communicate in different ways, they communicate by talking to each other, they communicate with people outside their functional area. The people outside the functional areas would come and communicate with people by helping them with any help needed. For example sales staffs need to know about production schedules so that they don’t promise goods which cannot be made on time. The operations staffs need to know what delivery dates have been agreed with customers so that goods can be produced on time.
Newsagent The sole trader does not have any functional areas so he can’t communicate with other people, he could only communicate with his wife who comes some times to help him when he needs it, he also has to be friendly and communicate with the customers in order to run his business. Effected By Changes In Economic Conditions Sainsbury’s If the economic conditions changes then it will affect Sainsbury’s because people will have less money to spend and wont go and by products which will then lead to the consumer spending changes.
Newsagent The sole trader would be affected by the economic conditions exactly the same way as Sainsbury’s, the business will suffer and then wont have enough money to run and then it would be closed down. Functional Areas Work Together To Achieve The Aims And Objectives Of Each Business Sainsbury’s The people in the functional areas in Sainsbury’s work and focus on different tasks and then specialize those tasks so that they perform the tasks really well and meet their aims and objectives. At the same time everybody is doing different types of work so the business operates efficiently.
Newsagent The newsagent does not have any functional areas but while he is at work his wife on the other hand at the same time is doing all the paperwork, which then makes it easier for the owner because when he goes home he doesn’t have to do it. Improvements By The Communication Methods Used By Each Business Sainsbury’s Sainsbury’s functional areas should have a representative to attend weekly meetings with other representatives from other functional areas to ensure communication between the functional areas. In every functional area someone should have a walkie talkie for assistant help in any crisis, e.g. if a customer spills something then they could call for assistant and then that assistant could come and clean it up as soon as possible so other customers wont see.
Newsagent The newsagent owner and his wife talk about the business informally at home, e.g. over dinner or while watching TV together. To improve communications they could set aside 15 minutes each day to specifically discuss about the business. The owner should have regular business chats with his brother and nephew as they help in the business sometimes.
