Functional areas

In any functional organization all active of an organization are divided

into various functions such as production, marketing, finance, ect. . Each
functional area is headed by a specialist who directs the activities of the
entire organization.

 Grouping of individuals on the basis of the function each performs in

the organzation.

 Grouping of activities or process on the basis of the their need in

accoumplishing one or more tasks.

 Alternative term for business unit.

The various functional areas of maruthi Suzuki are as follow,

 Finance Department

 Service Department

 Sales Department

 Insurance Department
FINANCE DEPARTMENT

Finance is the function in a business responsible for acquiring funds

for the firm, managing funds within the firm, and planning for the
expenditure of funds on various assets. ... Financial management is the job of
managing a firm's resources so it can meet its goals and objectives.

Finance is one of the most important pre-requisites to establish an

enterprise. Finance only that facilities an enterpreneur to bring together the
labore of one, machine of another and raw meterials of yet another to combaine
them to produce goods. Financial management is that the managerial activity.
which is concerned with the planning and controlling of the firms financial
resources.

FUNCTIONS OF FINANCE DEPARTMENT:

 Fincial analysis, planning and control.

 Manage the asset and financial structure of the firm.
 Offering the loan to the customers with less amount of interest.
 Cheak the cash details recording the vehicles delivery.
 Preparing salary book and verifying the all the files and records.

The part of an organization that manages its money. The business functions
of a finance department typically include planning, organizing, auditing,
accounting for and controlling its company's finances. The finance
department also usually produces the company's financial statements.

The main activity of finance department in maruthu Suzuki are

allowing the financial institutions to offering loan for the customers with the
some amount of interest and network will also be reduced for the
customers. Customers are having a knowledge about the following aspects
before getting the loan. By availing of huge amount of one time monetory
investment. If you taking the loan in most of the cases you may have to give
small down payment
Characteristics of finance department

 Good Record Keeping.

It helps the company to know about their current financial position. By which
the company can tackle the loss and earn more profit. Also they can manage to
provide salary to the employees working in their company.

The importance of finance department

 Term on the loan.

 The down payment neended to secure the loan.
 Is that loan covers registration and administration fees.
 Interest can be as fixed or variable, if it is fixed how long it goes?
 If a payment is late does the interest rate charge or remaines the same.

They are having a complete financial set up for their potential customer so
that the customer are not disappointed with any of their idea when they
step in the show room, for sake of the customer.

Finance is the elixir that assists in the formation of new businesses, and
allows businesses to take advantage of opportunities to grow, employ local
workers and in turn support other businesses and local, state and federal
government through the remittance of income taxes. The strategic use of
financial instruments , such as loans and investments, is key to the success of
every business. Financial trends also define the state of the economy on a
global level, so central banks can plan appropriate monetary policies.
SERVICE DEPARTMENT

A service department is usually associated with a manufacturer.

A service department is part of the fctory operations, but does not produce
the factory output. Rather it provides servides services to the factory
production departments. Some examples of service departments includes the
factory maintenance department, quality controll, and the purchasing
department. The head of each service deapaetment is held responsible for
the costs incurred in his or her service department. In traditional cost
accounting each servise depaertments indirect factory overhead which is then
allocated to the output of each production department.

Suzuki offers the full range of service, right from the basic oil change
to complete engine overhauling, they arrange service emergency works that
needs to be done. Having a well equipped workshop contains whit the
facilities like automated service system, gas analyzers and pneumatic guns
with hydraulic system so as to meet out the customer needs, service department
contains three job cards for identify the work of the vechiles and easy to
knowthe problems for the machines and deliver the vehile properly. Offer the
full range of service, right from the basic oil change to complete engine
overhauling, they arrange service emergency works that needs to be done.
Having a well equpped workshop containes with the facilities like automated
service system, gas analyzers and peunumatic guns with hydraulic system so
as to meet out the customer needs service department containes three job
cars for identify the work of the vehicle and easy to know the problems
for the machinies and deliver the vehicle properly.

Characteristics of service department

Service department provides the best service to their customers to

keep their vehicle in perfect running condition and deliver consistent
performance. They provide genuine spare parts which includes brake fluids,
coolants, engine oils, etc….
 Whenever a vehicle comes for the service they check all the
components like electronics, engine, carburettor, change the engine oil, change
the oil filter, air filter, swing arms, chain and sprocket, suspension, breaks and
overall cleaning and lubrication.

They provide three years’ free service for the customer’s vehicle which
is very beneficial for the customers owning Suzuki vehicles.

Important of service department

Customer service plays a major role in the business. In service

department, there is a contact between the company and the customers to
provide the best service to satisfy their needs. It helps them to know about
their problems, needs, etc.
SALES DEPARTMENT:

Sales Department is division of business that is responsible for selling

product service. A sale is act of selling a product of service in return for money
or the compensation. The main function of sales department is to attract and
retain customers. The sales actives need coordinated i.e. to meet the customer
demand with appropriate supply. Then carry out the sales. Their main aim is
to earn profit.

Functions of sales department

Maruthi Suzuki not only does the services of the vehicle but also sells the
best genuine spare parts/oils/coolant/brake fluids. They sell their products
according to the customer needs. They also sell their vehicle to the customers
through EMI.

Customer can order their vehicle directly and pay advance amount for the
product which will be delivered after few weeks or months.

Characteristics of sales department

A sales manager's primary responsibility is to administer successful

marketing plans that effectively contribute to achieving organizational goals.

General Management

Sales management includes understanding the importance of sales and

monitoring and explaining market trends to sales personnel. Sales managers
provide direct supervision to sales executive and are responsible for sales
executive learning and implementing any and all company sales
methodologies and initiatives.

Structure

Sales managers create sales team structures. All employees must clearly
understand their responsibilities and what's expected of them in terms of
performance as well as how to accomplish their assigned duties. Sales
managers help sales personnel understand their place in sales departments as
well as organizations as a whole.

Recruiting

Effectively hiring sales executives is among the most critical

characteristics in sales department. Recruiting top sales performers, is an
ongoing constant process. Sales managers must work at maximizing their hiring
skills, including conducting quality interviews and identifying potentially
successful sales executives.

Training

Sales managers must effectively train their sales team. How to

implement sales techniques, such as qualifying prospects and how to close deals
are all key components of effective sales training.

Motivation

Sales managers must identify what motivates sales team members and
design selling strategies accordingly. Interpersonal communication and
relationship building skills are required, as sales managers must help sales
executives create energy and gain momentum during times when they're
struggling. Motivational techniques include group recognition, financial rewards
for outstanding sales performance.

Importance of sales department

Sales department plays an important role in the success of business. It is

important as the main objective of every company/organisation is to earn
profit. The company tries to satisfy their customers’ needs by providing them
the best products /services.
INSURANCE DEPARTMENT:

Motor vehicle insurance, also called automotive insurance, a contract

by which the insurer assumes the risk of any loss the owner or operator of a car
may incur through damage to property or persons as the result of an
accident. ... More than half of this amount covered car damage.

Functions of insurance department

The main function of the insurance is to provide protection against the

probable chances of loss. The time and amount of loss are uncertain and at the
happening of risk, the person will suffer loss in absence of insurance. The
insurance guarantees the payment of loss and thus protects the assured from
sufferings. The company provides vehicle insurance plans with different benefits
and coverage for their customers. It provides coverage that is more important
for their customers and the third party

Characteristics of insurance department

Sharing of Risk:

Insurance is a device to share the financial losses which might befall on an

individual or his family on the happening of a specified event. The event may be
death of a bread-winner to the family in the case of life insurance, marine-perils in
marine insurance, fire in fire insurance and other certain events in general
insurance, e.g., theft in burglary insurance, accident in motor insurance, etc.
Value of Risk:

The risk is evaluated before insuring to charge the amount of share of an

insured, herein called, consideration or premium. There are several methods of
evaluation of risks. If there is expectation of more loss, higher premium may be
charged.

Amount of Payment:

The amount of payment depends upon the value of loss occurred due to the
particular insured risk provided insurance is there up to that amount. In life
insurance, the purpose is not to make good the financial loss suffered. The insurer
promises to pay a fixed sum on the happening of an event.

Large Number of Insured Persons

To spread the loss immediately, smoothly and cheaply, large number of

persons should be insured. The co-operation of a small number of persons may
also be insurance but it will be limited to smaller area. The cost of insurance to
each member may be higher. So, it may be unmarketable.

Importance of insurance department

Insurance turn accumulated capital into productive investments. Insurance enables

to mitigate loss, financial stability and promotes trade and commerce activities
those results into economic growth and development. Thus, insurance plays a
crucial role in sustainable growth of an economy.

Provide safety and security:

Insurance provide financial support and reduce uncertainties in business

and human life. It provides safety and security against particular event. There is
always a fear of sudden loss. Insurance provides a cover against any sudden loss.
For example, in case of life insurance financial assistance is provided to the family
of the insured on his death. In case of other insurance security is provided against
the loss due to fire, marine, accidents etc.

Generates financial resources

Insurance generate funds by collecting premium. These funds are invested

in government securities and stock. These funds are gainfully employed in
industrial development of a country for generating more funds and utilised for the
economic development of the country. Employment opportunities are increased by
big investments leading to capital formation.

Life insurance encourages savings

Insurance does not only protect against risks and uncertainties, but also
provides an investment channel too. Life insurance enables systematic savings due
to payment of regular premium. Life insurance provides a mode of investment. It
develops a habit of saving money by paying premium. The insured get the lump
sum amount at the maturity of the contract. Thus life insurance encourages
savings.

Promotes economic growth

Insurance generates significant impact on the economy by mobilizing

domestic savings. Insurance turn accumulated capital into productive investments.
Insurance enables to mitigate loss, financial stability and promotes trade and
commerce activities those results into economic growth and development. Thus,
insurance plays a crucial role in sustainable growth of an economy.