Functional area means how Tesco operates inside or outside the business and the different areas there are in the business. In Tesco there are many employees who have certain job skills and work together to complete the aims and objectives of the business. They get their raw materials from certain countries such as: USA, Germany, Sweden and France. They then check the end product and distribute the products. Functional areas of a business mean that there is a special job or role in one area of the business. The main functional areas of Tesco are:
• The finance department
• Human resources
• Finance and accounts
• Administration and IT
• Marketing
• Sales
• Customer services
The finance department takes part in many activities such as recording the business transactions and finding out if Tesco is making a profit or a loss. For example, by using a profit and loss account. The profit and loss account show whether a business has made a profit or a loss over a financial year. The picture below shows an example of a profit and loss account.

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