Importance of Business Functions in Organisations

This report highlights the importance of various business functions such as marketing, finance, operations, and human resources in organisations. It explains how these functions work together to achieve desired goals and objectives.

CW1 Business Report.

Table of Contents
MAIN BODY..................................................................................................................................2
REFERENCES................................................................................................................................1
MAIN BODY
Business functions provide the necessary vocabulary and framework that is needed to provide an
enterprise wide view of various business activities. Also they help to identify the main activities

of any organisations (Cagle, Yılmaz and Doğru, 2019). Further these activities are divided into
several functions or departments based on core and support functions. Core functions are used
for generating income while support functions are activities used for facilitating core functions.
All business decisions taken in each department must be interrelated with each other so that all
work can be carried out properly and activities are not interrupted.
Marketing plays a very important role in as it includes strategic and tactical set of functions
that include planning, product development, pricing, distribution and evaluation etc. All these
functions are assigned to marketing manager of any organisation so that work is carried out
smoothly (Role of marketing department, 2021). A proper marketing helps in meeting the
customer needs and ensures that organisation is growing in terms of market share. Moreover it
helps in adapting the right prices through serving better products to society according to the
current trends and situations.
Similarly finance is major pillar of any organisation and it is considered as essential
ingredient in successful business (Tavana, 2017). Finance helps the mangers to make strategic
key decisions to ensure that money is used in right way and is able to generate high returns in the
future. Finance department also plays a major role in identifying the options of long term
financing that are essential for forecasting future budget as well investments for any company.
Operation management in business function is responsible for managing the process of
creation of goods and services. They ensure that product quality is maintained without
compromising in productivity (Lavaei Adaryani and et.al., 2019). Moreover they ensure that
customer satisfaction is maintained by treating in best way as possible.
Role of human resource is also proved efficient in hiring and recruiting talent workforce for
the overall organisation. Further with the help of various training and development activities the
firm is able to develop skills that are required to solve any difficult tasks in the easiest manner as
possible. Also the employee performance is measured through various means that help to
identify areas where the firm is lacking in term of growth and development. This way safe
working environment is developed that promotes good brand image of the firms (Albertoni, Elia
and Piscitello, 2017). For example Microsoft maintains a strong link between the corporate
strategy and human strategy and hence they invest huge amounts of money in training and
development activity so that their employees are updated to current business environment.

It is very important that all these functions work together so that desired goals and objectives
are achieved. Each department relies on the other to complete the specific functional activities.
For example: Human resource department in Amazon is responsible for recruiting the right
candidates so that they can work in various departments such as marketing, finance, operations
etc. Moreover when all functions work together than overall efficiency is improved as each
department focus on single function that lowers the overall costs (Campanile, 2020). Also
various business strategies can be developed by combining the total cost involved in each
department which also avoids duplication of work. For example: ARM organization in UK that
sells microprocessors has thousands of external partners that share singular purpose and set of
values lay down by the management.
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REFERENCES
Books and journals
Albertoni, F., Elia, S. and Piscitello, L., 2017. Complementing the reshoring of manufacturing
activities: the relocation of business functions. In Reshoring of Manufacturing (pp. 57-75).
Springer, Cham.
Cagle, M. N., Yılmaz, K. and Doğru, H., 2019. Digitalization of Business Functions under
Industry 4.0. Digital Business Strategies in Blockchain Ecosystems: Transformational Design
and Future of Global Business. p.105
Campanile, G., 2020. The business consultant, role and functions in the learning process within
organizational contexts. Form@ re-Open Journal per la formazione in rete. 20(2). pp.248-
257.
Lavaei Adaryani, R. and et.al., 2019. Content analysis of business cooperatives theories
emphasizing network functions. Journal of Business Management. 11(1). pp.3-24.
Tavana, M. ed., 2017. Enterprise Information Systems and the Digitalization of Business
Functions. IGI Global.
Online references
Role of marketing department. 2021. [Online]. Available through:<
https://www.thehartford.com/business-insurance/strategy/creating-marketing-
department/role >.
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