Introduction to Business Studies

This report provides an overview of business studies, focusing on the structure of organizations and various departments. It discusses the importance of teamwork, interrelation of departments, and financial management. The report also explores Amazon's departments and their roles. Additionally, it highlights the significance of reporting, including balance sheets and profit and loss accounts.

INTRODUCTION TO
BUSINESS STUDIES

EXECUTIVE SUMMARY
These report describe the structure of organisation and various department in the
organisation. Marketing Department, Human Resource Department and Finance Department has
been describe below in this report. It has also explained about the importance and benefit of team
work in achievement of organisation goals .Lastly, this report explained about financial
management and its importance and purpose of reporting.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
Departments of Amazon..............................................................................................................4
Marketing department..................................................................................................................4
Human Resource department.......................................................................................................5
Financial department:..................................................................................................................5
Importance of Team work:..........................................................................................................6
Interrelation of various departments............................................................................................6
Financial Management.................................................................................................................7
Importance of financial management:.........................................................................................7
Reporting.....................................................................................................................................7
Balance sheet...............................................................................................................................7
Profit and Loss account...............................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Amazon is an American multinational technology which was founded by Jeff Bezos in
July 5, 1994, in Bellevue, Washington, United State. It mainly deals in consumer electronic, E-
commerce, Digital distribution, E-commerce and grocery. On the basis of revenue and market
capitalisation amazon is the world largest online place. In this report amazon has been taken as a
company .The report explain about the important of various department in Amazon Company. It
discuss about the benefit of working in team or collaborative work in an organisation for the
success of Amazon Company. The report has also explain about importance of financial
management for a company and the purpose serve by various financial accounts.
MAIN BODY
Departments of Amazon
Organisation can be defined as an institution comprising of multiple people working
together as a team for achievement of particular objectives. So the company divided the work
among employee and task are assign for attainment of predefined objectives. It helps
organisation in coordination of work of employee and procurement of resources for attainment of
company goals. Amazon is a huge organisation with second largest employer in United States
and world's largest online market place in term of revenue generation. There are various
department in an organisation such as Marketing, Accounting, Personnel, Production, and
Administrative. Amazon also has various other departments such as Production, Research and
Development, Purchasing, Marketing, Human Resource Management for smooth functioning of
business. As amazon deals in varieties of product and services there are various department to
perform a specific task .Thus the company can easily coordinate the work of different aspect of
worker by the help of department heads as it deal in variety of products. Department lead to
division of labour and specialisation that benefit the company as it increases efficiency, reduce
cost due to specialisation.
Marketing department
It is the most crucial department of organisation as it generate sales by satisfying the
needs of the customers. Marketing promote the product or service by proving a brief about its
quality, use and value of products. Amazon markets its product online by providing various
offers and discount to the customers. Marketing play various role in generation of sales such as
use of various marketing tools, increase brand value, and build relationship with customer.

Marketing department collect information related to the needs of the customers, guide the other
departments to produce, develop, fulfil and serve product or services to the customers. Amazon
marketing department guides other department to deal in those goods which satisfy the needs of
the customer or provide information related to recent trends. Marketing department play an
important role in generation of sales by attracting large customer thus increasing the profit
margin of the company. Amazon market its product through e-commerce thus marketing its
product worldwide which increases its market share and it offer various service such as
delivery of product at your door steps.
Human Resource department
Human resource department it include searching, screening, recruitment and training of
employee in an organisation to achieve its objective. Human Resource department helps in
fulfilling the demand of quality employees in fast changing environment. In Amazon human
resource department hires the employee, describes its role and responsibility and train the
employee for efficient achievement of goals. The human resource department is responsible for
providing good working condition, to oversee compliance with labour and administrate various
employee benefit. It fulfils numerous needs of employee from legal matter to financial in an
organisation. Amazon Human Resource department play various role such as recruit people,
provide safe environment, training and development, compensation and benefits and compliance
with labour law. Human resource is important for any organisation as it deals with management
of the most important resource of the company is, that is human. It is important for amazon
company as it increases production which lead to higher profit, maintain quality of the work, it
help in motivation and retention of employee, to resolve conflicts and build image of the
company.
Financial department:
Financial management is related to the management of money that means it related to
procurement of fund and utilising it in the most effective manner .Financial manager plans and
control financial resource of the company. So in case of Amazon the financial manager analyse
various sources of raising fund and invests in an appropriate way in various operations of the
management. Finance is required at every stage of business for establishment, diversification
and modernisation of business. The role of financial manager is to raise fund, allocate it in
effective manner, plan about the profit, and future requirement of funds and understand the

capital market. This department is important for an organisation as it help in identification of
needs of funds, its various sources, compare different source of finance and make investment.
This department is needed by Amazon to run the business smoothly, to expand, modernise or for
diversification, or for purchase of new asset of the organisation.
Importance of Team work:
Team work is important for every organisation as no individual can work alone the
employee is dependent on its fellow employee to complete a task effectively .Team work
increases the productivity, satisfy the needs of the employees. It helps in building strong
relationship among employees, learn new things, it is like a self-motivator, and create a sense of
belongingness and create synergy. There are various benefits of working as a team as people
with come up with different idea, thought work together for achievement of common goals . It
increases the efficiency of employee, creates sense of ownership, security, healthy competition,
resolves a problem faster and maximised the involvement of employee and build trust. For
Amazon company teamwork play an important role as it unite the effort of different employee
for attainment of desired goals. Thus it can be stated that the team work maximise the knowledge
of an individual and help the employee to learn new skill that can be fruitful in future. Thereby
increasing the production capacity of the organisation and creating a healthy environment for the
worker and building strong relationship.
Interrelation of various departments
Marketing and research and development department: These both department are inter
relate to each other and cannot work in isolation (Buljac-Samardzic and et.al., 2018.). Marketing
department gather information about the taste and preference of the customer and inform these to
the research and development department. So that the department will make research according
to these information obtain and develop product accordingly. Marketing department outlet the
product for commercialisation developed by R&D. So the marketing department of Amazon
Company will make research related to the marketing trends, customer preference and inform the
research and development department to provide or develop the product. Thus it increases the
market share of the company and the profit of the company also increases (Sarwar, Harris and
South, 2017).
Marketing and finance department: Finance is needed by every organisation for smooth
functioning of the organisation. It provides help to marketing department by providing

information related to the moderate price of product expected by customer. It can also order the
marketing department to make logos, packaging design by considering company. So in case of
Amazon company with the help of financial department marketing department can set standard
price for its customers.
Financial Management
Financial management it include all the function related to management of finance such
as planning, organising, directing and controlling of finance in an organisation. It includes all
such activities that are related to procurement of fund and their effective utilisation for
achievement of organisation. It identifies the various source of fund, compare different source of
finance and effectively utilise them for attainment of organisational goals.
Importance of financial management:
Financial management help the company in planning and procurement of fund thus
providing them sufficient fund when required. It also helps in efficient utilisation of finance by
investing it in appropriate manner. Financial management provide stability and increases the
overall value of the firm and assist organisation in making crucial decision related to finance.
Thus Amazon required finance management for operation of its business, to run it smoothly and
for expansion and growth so that the finance resource is to be manage in an effective manner.
Thus it can be stated that Amazon required it for attainment of its goal, to maximise its share of
profit and shareholders value overtime.
Reporting
Report is also is also very important part for any organisation as it helps in analysing and
evaluating the data in order to develop financial statements to the company.
Balance sheet
It is a financial statement that shows firm’s asset, liabilities and net worth at a particular
date these are usually prepared at the end of accounting period such as a month, quarter or year
end. It is prepared to evaluating the financial health of business by comparing it with various
preceding years. The balance sheet is used by shareholder, investors, and banker to know about
the financial position of company.

Illustration 1: Balance Sheet of Amazon Company, 2017-2018
(Source: How To Read A Balance Sheet Like An Expert, 2019)
Profit and Loss account
It shows company revenue and expense over a particular period of time and thus analysis
whether the business has earn profit or loss .This account is used to calculate both corporate tax
and income tax. It is also used by shareholder, banker and investor.

Illustration 2: Profit and Loss of Amazon Company, 2017-2018
(Source: In 2018, AWS delivered most of Amazon's operating income)
CONCLUSION
From the above report it can be concluded that an organisation has various department and each
department perform specific task in an organisation. Thus it can be stated that the success of
business depend upon co-ordination between departments and team work. It has also explain the
importance of financial management in an organisation. Lastly it conclude by describing the
meaning and uses of financial accounts.

REFERENCES
Books and journals
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Briggeman, B. C. and et.al., 2016. Current trends in cooperative finance. Agricultural Finance
Review. 76(3). pp.402-410.
Budhwar, P. S., 2016. International human resource management. In Encyclopedia of Human
Resource Management. Edward Elgar Publishing Limited.
Buljac-Samardzic, M.and et.al., 2018. Teamwork and Teamwork Training in Healthcare. Sage.
Cain, K. L. and Collins, R. P., 2018. Using Quality Improvement to Improve Internal and
External Coordination and Referrals. Journal of Public Health Management and
Practice. 24. pp.S69-S71.
Caselli, S. and Gatti, S. eds., 2017. Structured finance: Techniques, products and market.
Springer.
Human
Kotler, P., and et.al., 2015. Marketing. Pearson Higher Education AU.
Oakey, R. P., Cooper, S. Y. and Biggar, J., 2018. Product marketing and sales in high-technology
small firms. New Technologies and the Firm (London, Routledge, 1993). pp.201-222.
Sarwar, A., Harris, M. and South, N., 2017. Integrated Care and Inter-professional Teamwork:
Importance of Local Context and Situated Rationalities of Care Providers. International
Journal of Integrated Care. 17(5).
Thompson, J. D., 2017. Organizations in action: Social science bases of administrative theory.
Routledge.
Xiangyang, L. and et.al., 2015. How to Improve Human Resource Management Effectiveness
Through The Cooperation of Line Managers And Human Resource Department. Human
Resources Development of China. (21). p.9.
Zhan, J., and et.al, 2015. Frequent Emergency Department Users: Describing Care Coordination
Services. Annals of Emergency Medicine. 66(4).
Online
How To Read A Balance Sheet Like An Expert. 2019. [Online]. Available Through:
<https://fourweekmba.com/balance-sheet/>.
In 2018, AWS delivered most of Amazon's operating income. 2018. [Online]. Available Through:
<https://www.zdnet.com/article/in-2018-aws-delivered-most-of-amazons-operating-
income/>.

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