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Production Factory location, manufacturing techniques, outsourcing, and so on  Direct service



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F1 BPP ST(August 2020) [Unlocked by www.freemypdf.com] (1)

Production
Factory location, manufacturing techniques, outsourcing, and so on 
Direct service 
provision 
The provision of services to customers (as opposed to the production of goods) 
encompassing a range of activities, depending on the business concerned – eg 
consultancy, accounting, payroll services, tax advice, facilities management 
etc 
Marketing 
Devising products and services, pricing, promoting and distributing them, in 
order to satisfy customer needs at a profit. Marketing and corporate strategies 
are interrelated 
Administration 
General support to other business functions in their day to day activities – call 
handling, reception duties, maintenance of records etc 
Finance
Ensuring that the firm has enough financial resources to fund its other 
strategies by identifying sources of finance and using them effectively. The full 
role of the finance and accounting function is covered in detail in Chapter 8 
Human resources 
management
Secure personnel of the right skills in the right quantity at the right time, and 
to ensure that they have the right skills and values to promote the firm's 
overall goals 
Information systems
A firm's information systems are becoming increasingly important, as an item 
of expenditure, as administrative support and as a tool for competitive 
strength. Not all information technology applications are strategic, and the 
strategic value of IT will vary from case to case 
3.4 The Anthony hierarchy 
Managerial activity can be described in the following hierarchy (Anthony, 1965). 
(a) 
Strategic management
(carried out by senior management) is concerned with direction setting, 
policy making and crisis handling. The time frame of decisions made at strategic management 
level would typically have implications for three to five years. 
(b) 

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