Business news

Understanding the Key Internal Business Functions in a Business Organization

There are many internal business functions that must be carried out to ensure that a business organization runs properly. The major ones include:

  • Marketing & Sales
  • Accounting
  • Administration
  • Management Information Systems (MIS)
  • operations

Marketing & Sales

The terms sales and marketing are often used together, especially when working with a midsize company. While sale and marketing departments may work together, they are distinct from each other and require completely different skills.

Sales involves selling what is in stock. A business organization will have goods or services and the work of the sales team is to ensure they are sold to customers. Sales involves developing relationships with customers and channel partners and has short term goals that may be weekly, monthly or quarterly.

On the other hand, marketing involves looking at the business from the perspective of customers therefore helping lead it to where it should be in future. It involves directing the business to groups of customers, segments and channels where it can compete profitably. Marketing helps the business to determine where it should its product offerings and pricing to meet the needs of the customers. In other words, marketing deals with the creation of the right environment for sales to occur.


The main purpose of accounting is to keep financial records. Monetary information including salaries, operating expenses, capital expenditures, donations, cash flow, investments and utilities must be tracked at least on a monthly basis. In the long run, the information captured periodically becomes a critical tool in determining the financial health and wealth of a business. the data collected is used in two ways. Managerial accounting which involves internal application of data in internal planning to ensure that the business continues running properly. The same data is also used in financial accounting which seeks to determine the value of an organization based on past data.


In the context of a business, administration simply refers to the management of the business operations and decision making. It also involves the efficient management of resources including people with a view to directing activities towards common objectives. Management can rightly be viewed as a subset of administration that specifically deals with personal and operational aspects of a business but distinct from strategic and executive functions.


Operations function involves bringing together raw materials and production process to make the products that the consumers want. Operations also involves sharing ideas within the company with a view to improving processes ultimately saving costs. Benefits of operations function are immense and include increase in efficiency as well as the management of health, safety and environmental issues.

Management information system

The performance of other functions in a business organization can be greatly enhanced by having a proper management information system. Essentially, a management information system is a digital database of financial information of organized and programmed so that it produces periodic reports on operations for all levels of management. The main significance of management information system is to give feedback to managers about their work.

To Top

Pin It on Pinterest

Share This