An Analysis of the Role and Importance of Business Functions

This report provides an overview of core business functions, including marketing, finance, operations/production, and human resources, and their respective roles within an organization. The report highlights the significance of each function, detailing how marketing identifies consumer needs, finance manages funds, operations ensure product and service delivery, and human resources handle employee management. It emphasizes the importance of these functions working in collaboration, explaining how they support each other to achieve business objectives, such as marketing providing consumer data to production and finance providing funds to marketing and HR. The report concludes by summarizing the effective contribution of each function and the overall importance of their combined efforts for business success, supported by references to academic sources.

Business report

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................2

INTRODUCTION
Business is an activity or occupation as well as trade and buy, sale of commodities or
services to earn profit. There are different business functions, like finance, marketing,
production, human resource and others make an effective contribution in running the business
(Birt and et. al., 2020). This report will consider information about the role of different business
functions and importance of all these working together.
MAIN BODY
Role of marketing, finance, operations/production and human resources
Human resource management considers hiring, training, managing, staffing, expansion
and monitoring employees’ performance. Human resource function also responsible to
compensate, pay and remunerate workforce as per their performance. With the support of
planning solutions, salary and benefits, as well as merit an bonus decisions and complex fixed
and variable compensation plans, can be administrated at the employee or team level for any
sector or firm. Marketing function play an effective role by identifying the needs and preferences
of market and consumers. Also, they support in promoting the goods and services of the firm in
order to create awareness about them by using different marketing channels. Production function
also play an effective role in the business in running business operations and activities by
manufacturing products and services as per the needs and demands of consumers so that they can
get an effective satisfaction. Operations are the heart of a business offering goods and services in
a quantity and of a quality that meets the needs of the consumers. Operations control the supply
chain, considering procurement and logistics (Rosati and Faria, 2019). The finance function also
plays an effective role. This function considers planning for, obtaining and managing an
organisation’s funds. Finance manager plan for both short term and long term financial capital
needs and analyse the influence that borrowing will have on the financial well being of the
business.
Importance of all these functions working together
These all functions are significant and crucial for the firm because when these all
divisions as well as functions work together then business organisation can operate its business
effectively in a particular business area or industry. All these functions are related to each other
like finance function provide fund to marketing and human resource to conduct promotion and
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recruitment process respectively. Marketing division collects data about needs and demands of
consumers so that production function can manufacture goods and services as per the
requirement of them (Nielsen and Raswant, 2018). Also, when the finance, marketing and other
functions require filling their vacant positions then Human resource function organise staffing
and hiring process to recruit skilled and talented applicants. So all these functions are important
to work together because they support an establishment in performing business activities in
appropriate manner.
CONCLUSION
This has been summarised form the defined information that different business functions
like marketing, human resource, production or operations and finance etc. play an effective role
in a business organisation by performing their responsibilities in effective form. They are
significant for a company to work together as they support in operating the business of
enterprise.
REFERENCES
Books and Journals
Birt, J. and et. al., 2020. Accounting: Business reporting for decision making. John Wiley &
Sons.
Rosati, F. and Faria, L.G.D., 2019. Business contribution to the Sustainable Development
Agenda: Organizational factors related to early adoption of SDG reporting. Corporate
Social Responsibility and Environmental Management, 26(3), pp.588-597.
Nielsen, B.B. and Raswant, A., 2018. The selection, use, and reporting of control variables in
international business research: A review and recommendations. Journal of World
Business, 53(6), pp.958-968.
Beerbaum, D. and Puaschunder, J.M., 2019. A behavioral economics approach to digitalization:
The case of a principles-based taxonomy. In Intergenerational Governance and
Leadership in the Corporate World: Emerging Research and Opportunities (pp. 107-
122). IGI Global.
Camilleri, M.A., 2018. Theoretical insights on integrated reporting. Corporate Communications:
An International Journal.
Online
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Functional Areas of Business. 2020. [Online]. Available Through: <
https://courses.lumenlearning.com/wm-introductiontobusiness/chapter/reading-functional-areas-
of-business/>.
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