Importance of Different Business Functions in Successful Organizations

This report discusses the importance of different business functions in successful organizations. It covers functions such as production, research and development, purchasing, sales and marketing, human resources, account and finance, and distribution. Real-life examples from companies like Sainsbury's, TESCO, H&M, and Unilever are used to illustrate the importance of these functions. The report also includes references from academic sources.

THE GRADUATE
CHALLENGE BUSINESS
REPORT

TABLE OF CONTENTS
Business functions.......................................................................................................................3
Different business functions and their importance in successful organisations..........................3
REFERENCES................................................................................................................................1

MAIN BODY
Business functions
They are functions used by the companies for doing all the activities like production, selling
marketing etc for earning more profits (Goni and et. Al., 2021. ). These functions are performed by
each organisation differently with different perspective.
Different business functions and their importance in successful organisations
 Production: This is the first function of every company for making its products available
to market deciding how much production or in which quantity requires expert’s advices
and full market research to know its demand. For example Sainsbury’s is using
marketing research methods for before producing the products its demand so that it can
protect its cost of selling and distribution and earning with sustainable profits.
 Research and development: The next business function is doing the research on the
products and the markets for developing new featured products according to the customer
needs. For example TESCO team of research and development is doing the research
internationally for selling its products according to needs of the customers. This team
provides complete information for developing the existing products and doing the
changes in new products with research (Litvinov., 2021).
 Purchasing: In this function the company decides the supplier from whom it has to
purchase the raw materials and components for manufacturing into the finished goods it
has to decide between huge suppliers the relevant one which having low rates. All the
organisations are saving its cost by purchasing in bulk quantity for increasing profits with
finished goods.
 Sales and marketing: This functions are done by the same departments in most of the
companies because sales is directly related to the marketing. If the marketing of the
company is strong then its sales automatically increases. The H & M is marketing its
products internationally and involving huge amount of budgets in the marketing for
increasing its sells. Due its good marketing activities its customer are increasing on rapid
growth due to discounts and after sales services by them.
 Human resource: This is the department in which HR specialist and managers decides
and take the new employee for doing the work more efficiently and effectively. This is

the sole responsibility of the HR team for recruiting and selecting best people like right
people at the right place so that the work conditions will be maintained properly.
Unilever is dealing in huge amounts of products and need huge amount of employees
their employees are doing its task with full motivation and efforts with complete team
harmony because of the good leadership in the company.
 Account and finance: The account and finance department of each company is important
department in which all the cash inflows and outflows are maintained and calculated for
preparing the annual budgets (Lu and et. Al., 2021). All the investment activities or credit,
loans are recorded by the managers of this departments. This department is responsible
for the all the employees payrol, salaries and wages activities.
 Distribution: This is the last function of the every organisation for distributing its
products through good channels of marketing like advertisements on television, social
medias, sales promotions all the experts of the company decide this channel of operation.

REFERENCES
Books and journals
Goni, F.A. and et. Al., 2021. Sustainable business model: A review and framework development. Clean
Technologies and Environmental Policy. 23(3). pp.889-897.
Litvinov, Y.I., 2021. PROVIDING ENTERPRISE OBJECTIVES WITH MAIN FUNCTIONS OF
BUSINESS ENVIRONMENT. Publishing House “Baltija Publishing”.
Lu, Q. and et. Al., 2021. Integrated model‐driven engineering of blockchain applications for business
processes and asset management. Software: Practice and Experience. 51(5). pp.1059-1079.
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