Importance of Business Functions: TESCO Company Report

This business report analyzes the functional areas within TESCO, a leading multinational retailer. It defines and explores the roles of key departments: finance and accounting, human resources, marketing, and operations. The report emphasizes the significance of each department's contribution to TESCO's overall success, highlighting their individual responsibilities and how they collectively contribute to the achievement of organizational objectives. The report also underscores the importance of interdepartmental collaboration, emphasizing how effective teamwork and communication between different business functions can improve customer satisfaction, avoid duplication of work, and foster a strong sense of unity among stakeholders. The report concludes by reiterating the essential role of assigning specific tasks to different functional areas to ensure the efficient operation and achievement of goals in large organizations like TESCO.

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Business Report
Student
Date
Institution

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Table of Contents
Introduction......................................................................................................................................3
Functional areas in TESCO Company.............................................................................................3
Importance of working across the departments...............................................................................4
Conclusion.......................................................................................................................................5
Reference.........................................................................................................................................6

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Introduction
Deployment of tasks to different business functions or departments in an organization is vital for
the growth of a business (Khosrowpour, 2017). These business functions perform according to
certain business requirements and they differ depending on the nature of business performed.
For instance, TESCO Company, which is among the top largest retailers in the world dealing
with multinational groceries and general merchandise, has several business functions that aid the
organization in archiving its objectives (Son, et al., 2018). Specific functional areas will be
accountable for supporting specific objectives. This ensures that all business activities are
performed accurately and efficiently.
Functional areas in TESCO Company
1. Finance and accounting department
They are accountable for all transactions taking place in the organization. They plan, audit and
organize the finances of the company. In addition, they are responsible for producing the
financial statements of the organization which determine the financial position of the business.
They also control all the cash flow and finances in order for the company to stay reliable by
ensuring that the business is able to pay debts and invest in new projects to make profits.
2. Human resource
Human resource department is vital in every organization. The success of TESCO Company lies
on its people. It is the responsibility of the HR department to recruit, train, and develop new

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employees with the required skills, experience, and qualification. Also, it is the work of HR to
determine the salaries of different personnel in a different position in the company. The
department keeps all the company’s records in its possession confidential (Rafiei & Davari,
2015).
3. Marketing
It is through advertising and promotion of products and services, TESCO Company will be able
to communicate to its target market. Through these marketing channels, the targeted population
is aware of the goods and services offered by the organization. Effective marketing channels will
lead to long term profitability, success and increase in the market share of TESCO Company.
The marketing department is in charge of promoting the business to generate sales hence helping
the organization grow. The department is also responsible for creating diverse marketing
strategies and coming up with promotional campaigns. In addition, the marketing department is
accountable for monitoring activities of the competing industries (Feng & Morgan, 2015).
4. Operations
This department is responsible for designing, overseeing, controlling the production process and
redesigning the company’s operations in the production of groceries. It also ensures that TESCO
has enough stock through the use of EPOS system which automatically reorders when the
organization is out of stock. Operation department is responsible for delivering goods and
services to its customers.
Importance of working across the departments
As a result of these departments working together, TESCO Company has efficiently improved
thus enhancing customer satisfaction. Besides, when different departments work together to

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archive a particular project, they complement the need for each business function. This aids in
avoiding duplication of work and makes the whole process easier and less tedious. Working
across the business functions and learning what motivates each department instills the spirit of
camaraderie among the stakeholders of TESCO Company, as they all work together to archive
one goal (Crispo, 2016).
Conclusion
Different types of task are carried out in every organization which requires to be addressed on a
daily basis in order for the firm to achieve its objectives and goals. For instance, in TESCO
Company stock needs to purchased, finances and cash flow needs to be controlled and customer
service issue addressed among others. As a result, people have to be assigned to different
individual errands. In large firms like TESCO, it is easier to recognize different functional areas
since groups of workers work together in departments. Each of these departments will then carry
out specific tasks in accordance with areas of their specialization.

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Reference
Crispo, V., 2016. IDEALIST CAREERS. [Online]
Available at: https://idealistcareers.org/why-working-across-departments-is-important/[Accessed
7 May 2019].
Feng, H. & Morgan, A. N., 2015. Marketing department power and firm performance. Journal of
Marketing, 5(79), pp. 1-20.
Khosrowpour, M., 2017. Encyclopedia of information science and technology. 4th ed. Hershey,
Pa.: Information Science Reference.
Rafiei, N. & Davari, F., 2015. The Role of Human Resources Management on Enhancing the
Teaching Skills of Faculty Members. Materia socio-medica, 1(27), p. 35–38..
Son, J., Baek, J., Park, H. & Kim, C., 2018. The localized merchandising for international
retailers: A study of Tesco’s failure in Japan. The Ritsumeikan Business Review, 5(56), pp. 1-20.