Question

Ahmed and Mohammed want to start their own business. They are thinking to establish a factory to manufacture
sunglass in Oman. The factory needs an investment of OMR 600,000. Mohamed having OMR 150,000 and
Ahmed having OMR 250,000. They have a shortage of OMR 200,000. Ahmed suggests to take loan from Bank
but Mohammed suggests to sell shares to manage the investment shortage. They are confusing regarding the suitable source of finance to manage the investment shortage. This will affect the legal entity of their
organization. There are many forms of organization, but they are confusing between LLC and SAOG.

Furthermore, Ahmed suggest to hire the following employees:
 The Managing Director has the major responsibility for running of the company, including setting
company targets and keeping an eye on all departments.  The Distribution Manager is responsible for controlling the movement of goods in and out of the
warehouse, supervising drivers and overseeing the transport of goods to and from the firm.  The Production Manager is responsible for keeping a continuous supply of work flowing to all production
staff and also for organizing manpower to meet the customers' orders.  The Sales Manager is responsible for making contact with customers and obtaining orders from those
contacts.  The Finance Manager controls all the financial dealings of the company and is responsible for producing
management accounts and financial reports.  The Public Relation Manager is responsible for external communications, media, social media and
complains  The Human Resource Manager is responsible to handle all staff affairs, HRP, recruitment and selection,
etc.  The IT Manager is responsible for maintain the organization ERP and any technology within the
organization  Maintenance manager is responsible to maintain the production line and company assets.   
Also, they are planning to hire 5 distribution officers, 5 accountants, 5 HR officers, 3 Public relation officers, 10 Trade promotors, 5 Mechanical Engineering for production, 5 Mechanical Engineering for maintenance 100 production labours and 10 Labour supervisors.

Explain the main functional areas of a business organization that you have identified from the case study? Support your answer by identifying the responsible manager of each functions

Answer 1

Ahmed and Mohammed wanted to establish a sunglass manufacturing factory for which they have a shortage of money for investment.

Here, only to shareholders Ahmed s establish the company, and Ahmed suggested having more employees in which wanted to hire a managing director who has the major responsibility for running the business.

According to such information, one can conclude that the company if following the LLC form of organization as LLC requires a minimum of two shareholders and one managing director.

Under this manufacturing factory, the main functional areas and their responsible managers would be:

· Financing: A sunglass manufacturing company needs finance to purchase raw material and equipment to manufacturing sunglasses. A finance manager is responsible for this function.

· Operations/Production: Here, an operating activity refers to the process of transforming raw material into useful sunglasses, and that can be done using various raw materials under the supervision of the manager. A production manager is responsible for this function.

· Maintenance of products: it refers to the responsibility of managing the inventories that are ready to sell and need to keep in the warehouses to protect them from any damage. The maintenance manager is responsible for this function.

· Sales/Marketing department: Sales or marketing function is the process of promoting products such as sunglasses, to attract customer to buy sunglasses. A sales manager or marketing manager is responsible for this function.

· Distribution of products: When the products are ordered by the customer, the main activity is to distribute the products, and provide accessibility of the products in a different market. Distribution manager is responsible for this function.