Importance of Business Functions and Interrelations: MG408 Report

This report examines the significance of various business functions, including marketing, finance, human resources, and production, within an organization. It defines the roles of each function, highlighting their importance in maintaining day-to-day operations and achieving company goals. The report specifically uses Marks and Spencer as a case study to illustrate the practical application of these functions and their interdependencies. It details the connections between human resource management, marketing, finance, and production, showcasing how each function relies on and influences the others. The report emphasizes the necessity of these functions working collaboratively to ensure efficiency and overall business success, supporting its analysis with academic references. The report fulfills the assignment brief's requirements by providing an evidence-based discussion of business functions and their interrelations, demonstrating core academic skills like evidence-based writing and proper Harvard referencing.

IMPORTANCE OF
BUSINESS FUNCTION

Table of Contents
EXECUTIVE SUMMARY.........................................................................................................................3
INTRODUCTION.......................................................................................................................................4
TASK..........................................................................................................................................................4
Role of various Business functions..........................................................................................................4
Inter – link between various functions of business..................................................................................4
REFERENCES............................................................................................................................................7

EXECUTIVE SUMMARY
Business function refers as a set of organizational activities that have significance
importance in fulfillment of cash management, manufacturing and tracking customers invoice in
a firm. The study had explained different business functions role such as Marketing, Finance,
Human resource and production. Moreover, it had defined interrelationship between different
business functions.

INTRODUCTION
Business functions can be referred as marketing, sales, production and human resource
management. These functions help to maintain day to day operations of the company. Report is
based on Marks and Spencer. The company was established in 1884 at Leeds, United Kingdom
by Michael Marks and Thomas Spencer. This company is engaged in the business of retail
having headquarters in London, UK. The company is serving customers with more than 80000
employees and with net turnover of £10377.3 million. The study will explain various roles of
business function. Furthermore, it will define interrelationship between various organizational
functions.
TASK
Role of various Business functions
 Human Resources Management – It is a practice of recruiting, hiring, managing and
deploying the employees of an organization such as Marks and Spencer. HRM is often
defined as a department of the company which is responsible for creating, observing, and
putting the resources of the organization to insure effectiveness and efficiency in Marks
and Spencer.
 Finance – It is considered to be a part of financial management, it refers to controlling
the financial budget of the organization in order to reduce the cost of production. Finance
function is considered to be the lifeline of the business units because Marks and Spencer
requires some amount of finance (Hull and Scott, 2020).
 Production – This function shows the relationship between the quantity of output and
various qualities of inputs that are used to produce the output. This function establishes
the physical relationship between the inputs that are land, labor, capital and entrepreneur
with the output to ensure efficiency of production in Marks and Spencer.
 Marketing - This function role is to sale the products of the company. Thus, for this
marketing department of Marks and Spencer is responsible for doing promotional
activities of the products. This includes advertisement, print media, and mass media and
through giving various offers they are able to attract large numbers of the customers.

Thus, by these sales of the products gets increased. They produce or develop the product
as per the current market situations and choice of the customers.
Inter – link between various functions of business
1. Human Resource Management
 HRM linked with Marketing – It needs to posses right skill, creativity and
knowledge to finish the job of research data that are used for making the best
marketing mix in order to increase sales of Marks and Spencer.
 HRM linked with Finance – It sets the rewards for performance that must lies
within the budget (Kavanagh and Johnson, 2017).
 HRM linked with Production – It ensures that there must be a right person for
the right job to insure efficiency in each field of Marks and Spencer.
2. Finance
 Finance linked with Marketing – It set targets and budgets to maximize profit
and sales to ensure efficiency.
 Finance linked with HRM – Finance sets the amount if salaries and wages that
are being given to the employees of Marks and Spencer (Bekhradi, Yannou and
Cluzel, 2016).
 Finance linked with Production – finance sets fund for work and other
expenses that are incurred during the production process.
3. Production
 Production linked with Marketing – The new variety’s of products and the
change that are to be done in existing one are identified during production process
in Marks and Spencer.
 Production linked with Finance – Production department of Marks and Spencer
sets financial budget for each expense according to the past report.
 Production linked with HRM – The needs of staffing, and the problems of
understaffing are only identified in respect with employees and labors required in
production.
4. Marketing
 Marketing is linked with Production - Marketing function of Marks and Spencer is
responsible for research and development. They do detail study of market to analysis

the current demand and trends of customers. Once they find customers preferences
they report to production department. They are able to innovative best product with
the help of marketing function.
 Marketing is linked with Finance - To do marketing of products there is required of
the finance. As promotional and advertising activities of marketing occur huge costs.
Hence, Finance department of Marks and Spencer prepare the budget for marketing
function and also provides them finances. For doing research as well they required
money which can be only be provided by finance function.
 Marketing is linked with Human resource - Human resource function work is to
recruit best marketing experts who are able to sale the products of the company.
Hence, human resource management takes interviews of the candidate and appoint
best marketing expert for the company.

REFERENCES
Books and Journal
Bekhradi, A., Yannou, B. and Cluzel, F., 2016. Importance of problem setting before developing
a business model canvas. In DS 84: Proceedings of the DESIGN 2016 14th International
Design Conference (pp. 907-916).
Hull, A. and Scott, P., 2020. The “value” of business archives: assessing the academic
importance of corporate archival collections. Management & Organizational History.
Kavanagh, M.J. and Johnson, R.D. eds., 2017. Human resource information systems: Basics,
applications, and future directions. Sage Publications.