Importance of Functions in IKEA Company

This report analyzes the importance of different functions in the context of IKEA Company, including HR, finance, and marketing. It also discusses the significance of teamwork and financial management within the organization.

Introduction to business studies

EXECUTIVE SUMMARY
The report is based on analysis of different kinds of functions and their importance in the context
of IKEA Company. In order to do so each function has been assessed in an effective manner with
relevance to their importance for companies’ success and growth. In the further part of report
importance of balance sheet and profit & loss account is abstracted.

Contents
EXECUTIVE SUMMARY.........................................................................................................................2
INTRODUCTION.......................................................................................................................................4
HR department............................................................................................................................................4
Finance department.....................................................................................................................................5
Marketing department.................................................................................................................................5
Team work and its importance within an organization................................................................................6
Financial management and its importance within an organization..............................................................7
CONCLUSION...........................................................................................................................................8
REFERENCES............................................................................................................................................9
APPENDIX 1: Example of balance sheet..................................................................................................10
APPENDIX 2: Example of income statement...........................................................................................11

INTRODUCTION
The corporation is managed with the help of multiple tasks and practices carried out by the
management of a firm in which the knowledge to produce long-term success with excellence and
adequacy is improved with continuous periods of example. Market studies focus on the work of
the employee as their capacity to accumulate and accomplish sustained expectations improves on
a random basis (Olson, Hult and Olson, 2018). As this capacity to achieve innovative and
sustained targets systematically improves, company efficiency and results are increased and built
for this purpose. The following article is focused on IKEA, a global grocery manufacturer and
merchandiser. The study covers the role of HR, marketing and finance, experience of collective
work process and the impact of organizational reporting within an enterprise.
HR department
There are various tasks that are done within the organization, since only the desire to produce
consistent outcomes and goals is accomplished in a timely manner. This rate of attraction and its
ability are being established with greater adequacy (Héder, Szabó and Dajnoki, 2018). Within the
organization, these roles have played a critical role as this degree of adequacy is produced as this
competitiveness and lengthy survival is sustained with excellence. There are various roles in
IKEA that are interpreted or below it is as quickly described as:
Role of HR: Within a corporation, the HR department plays a larger role and duty as this
employment life cycle is regulated, such as recruitment, hiring, termination, preparation and
advancement, boarding and numerous other tasks, and everything is handled in responsible for
employee compensation. The HR department focuses on different factors, as listed below:
 Candidate recruitment: The HR gains appreciation and awareness of company
expectations and criteria and then fills the vacancy with the most suitable candidate.
 Attracting candidates: In this IKEA HR, work on recruiting the future and competent
applicant who sufficiently supports the company's work conditions.

 Performance evaluation: conducting and monitor the effectiveness of all applicants for
this HR and offering sufficient assessment and other services that promote employers and
employees relationships.
Finance department
It is an important feature that typically includes business capital and this is regulated and handled
by financial manager as with this funding and its expenditure is scheduled and structured
according to conditional appropriateness (Shrivastava, Nagdev and Rajesh, 2018). In the aspect
of IKEA below some importance of finance function are mentioned-
 Wealth management: It is a position in which management formulates and creates a
financial strategy that specifically forecasts and produces income and benefit, income,
expenses, from which financial needs are satisfied over a consistent period of time.
 Raise cash: financial managers receive and raise extra resources in this position to help
make appropriate acquisitions and activities that pursue a stronger degree of engagement
in which appropriate alignment is controlled between debt and equity.
 Spending cash: this function of financing ensures an acceptable amount of spending that
is expected in comparison to sufficient funds, as this better rate of return is generated in a
timely manner.
Marketing department
Marketing is a division that has contributed to the promotion and promotion of an organization's
vision. It has a deeper outlook in which the opportunity to communicate with consumers,
partners and their culture has strengthened through processing overstepping and brand and value
building with constructive experience.
 Consumer distribution: It is related to distribution advertising under which an
individual’s needs request is acknowledged with respect to continuous conformity and
ensured by processing on delivery times and detailed invoicing.

 Price: It is a feature in which all internal and external variables are evaluated because it
has a significant effect on the company judgment method. This price is influenced on the
basis of demand, labor cost, quantity and efficiency (ERWIN, ABUBAKAR and MUDA,
2018).
 Promotion: In regard to distribution procurement, it is a vital prospect as this
management guarantees that all the numerous services and goods inside the brand are
created.
Team work and its importance within an organization
The collective work is handled through the combined success of two or more firms that have
allowed both entities to undertake and bring in place greater levels of activities that are
effectively caused (Kremer, 2018). With the help of informal, formal and informal acquisitions
that are organized in a traditional, cooperation may be handled. In this company, all may work
together in such a varied range through which legal agreement is established by which effective
costs are covered, as in this systematic process of arrangement through which appropriate
services are available, etc as this appropriate structure is established that encapsulates successful
work that generally enhances work expectations and skills in an appropriate manner. The
corporation typically takes part in the production and growth of a successful community that
successfully achieves a crop that is packed with immense advantages. Function productively in
this collective of people as these appropriate concepts are discussed in an expanded edition. For
IKEA, it is also relevant as it demonstrates ample interest in terms of business preparation.
 Increases imagination and thought skills: In comparison to skills and skills development,
the required degree of creativity and growth is stimulated in regard to working
collaboratively. This sufficient degree of strategizing is transmitted by which the ability
to overcome difficult issues and creating the potential for critical thinking is effectively
improved.
 Increases learning possible outcomes: It is an area in which the staff organizational
members both appreciate the mutual capacity to work. Both the individual’s personal

abilities and understanding are improved in this manner, which also increases working
usability in a restricted mode.
 Higher efficiency of employees: It is a great abilities of cooperation in which the rate of
outcomes and person production is routinely handled. It creates and improves
collaboration and also tends to establish strong relationships by advancing both the
degree of employee participation and involvement.
Financial management and its importance within an organization
Finance is often the most critical and necessary component of the enterprise as it induces revenue
skills from which lengthy profitability is properly sustained. Cash performance allows the
corporation to have a strong emphasis and interest on the creation and design of efficient and
effective target and mission preparation and organization (Khatri and Samuel, 2019). The direct
supervision, administration and organization of a wide variety of operations are processed
routinely in this way. In addition to this, both budget management and efficient resource
distribution are included, as they play an important role within IKEA jointly. There are numerous
financial planning positions reported inside IKEA and they are as briefly outlined below as:
Financial decision-making and controls: The financial adviser plays an important function in this
role in financial accounting, under which effective decisions are made and practiced, as financial
instruments and procedures are properly processed for this ongoing use. In order to monitor
funding, for instance, financial forecasts benefit and reduce total, ration assessment and several
other methods are used.
Financial preparation: It is a task undertaken and accomplished by financial managers in which
the appropriate degree of planning and management is perfectly handled. In turn, a multitude of
tools are used to better clarify all the demands and goals under which market conditions are
governed and handled in terms of budget preparation and management.
Capital management: It is primarily a function performed within financial management, since all
market capital needs are calculated by the processing of a sustained degree of capital group and

structure. In this situation, the need for capital and its financing are processed in a timely
manner.
Cash flow management: It is an important duty that is often important for the corporation when
this appropriate volume of trade flows is controlled and the capital need is met in terms of
running expenditure and control (Huselid, 2018). This adequate monitoring of debit and credit
accounts means that it helps achieve proper leverage over the allocation of time and money.
CONCLUSION
From the aforementioned article, it was outlined that business studies are encompassed by the
numerous roles and activities conducted jointly in order to produce uniform outcomes during the
allocated duration of example. When this appropriate level of functions is done, there is a
separate strategy employed by HR, marketing and finance. In contrast to these collective
working processes, sustained awareness and care for job success and efficiency is given. In
comparison, the role of financial accounting that is stated within an entity is sufficiently
understood.

REFERENCES
Olson, E.M., Slater, S.F., Hult, G.T.M. and Olson, K.M., 2018. The application of human
resource management policies within the marketing organization: The impact on business
and marketing strategy implementation. Industrial Marketing Management, 69, pp.62-73.
Héder, M., Szabó, S. and Dajnoki, K., 2018. Effect of labour market changes on HR
functions. Anali Ekonomskog fakulteta u Subotici, (39), pp.123-138.
Shrivastava, S., Nagdev, K. and Rajesh, A., 2018. Redefining HR using people analytics: the
case of Google. Human Resource Management International Digest.
ERWIN, K., ABUBAKAR, E. and MUDA, I., 2018. The Relationship of Lending, Funding,
Capital, Human Resource, Asset Liability Management to Non-Financial Sustainability
of Rural Banks (BPRs) in Indonesia. Journal of Applied Economic Sciences, 13(2).
Kremer, K., 2018. HR analytics and its moderating factors. Vezetéstudomány-Budapest
Management Review, 49(11), pp.62-68.
Khatri, V. and Samuel, B.M., 2019. Analytics for managerial work. Communications of the
ACM, 62(4), pp.100-100.
Huselid, M.A., 2018. The science and practice of workforce analytics: Introduction to the HRM
special issue. Human Resource Management, 57(3), pp.679-684.

APPENDIX 1: Example of balance sheet

APPENDIX 2: Example of income statement