Business Report on H&M: Roles and Interrelationships of Functions

This business report examines the operational structure of H&M, a global retail clothing company. The report defines the roles of key functional units, including marketing, human resources, production, and finance, highlighting their distinct responsibilities and contributions to the organization's objectives. The marketing function is responsible for promoting products, the HR department manages the workforce, the production unit converts raw materials into finished goods, and the finance department manages financial activities. The report emphasizes the interdependencies between these functions, illustrating how human resources supports marketing, and finance supports production. The report references academic texts to support its analysis and concludes by emphasizing the importance of these functional units working cohesively to achieve overall organizational goals.

Business Report

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Roles of business functions.........................................................................................................1
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................3

INTRODUCTION
A organisations has a huge structure which operates on the basis of number of functional
units. These functional units are various departments with small objectives of company and
move in direction to accomplish their goals and contribute their part in overall motive of
organisations (Mazak and Huemer, 2015). For this business report, H&M is considered it is a
Swedish company that deals in retail clothing. It was established in 1947 by Erling Persson and
headquartered in Stockholm, Sweden. The report cover the role of functional units of H&M and
their interrelationships.
MAIN BODY
Roles of business functions
Functional units are the small departments in which an organisations is divided. These
departments have their unique roles and responsibilities which when performed earn their small
objectives and enable company to be most effective and attain their overall objectives. Roles of
different departmental units of H&M are as follows: Marketing function is a team which enables H&M to introduce its products in
marketplace. The role of marketing team is to identify appropriate sources by which
company can promote its goods and services in the external environment, spread word
about their offerings and enhance their revenue units. Human Resource department of H&M manages the workforce of entity. The role of this
functional unit is to manage company's requirement of manpower. Human resource
department bring in fresh talents according to the requirement of H&M and its operations
for performing all tasks. Production unit is one of the most important function of every organisations. It is
basically a units where raw materials are converted into finished goods in order to move
in market and make sales. The role of production department is clear with its name .
 Finance department of H&M is responsible for many tasks, their role is to manage all
finance related activities. Finance unit of company make budgets, allocate funds of other
functional units and keeps check on all financial needs of organisations.
Interrelationship of business function and their importance
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All the different departmental units of H&M are interrelated, they are dependent on one
another for performing their activities. These interrelationships of various functional units of
H&M are explained below with its importance (Yuen and et. al., 2019).
Human resource and Marketing Department
The HR department bring employees according to their potentials and need of H&M
different operational segments. Marketing team is also developed by HR unit and future
requirement of workforce is also fulfilled by HR unit. This is where both the units are
interconnected, because if marketing department do not have experts they can not perform their
tasks in required and effective manner.
Production and Finance Department
The production unit is the most essential unit, it needs a lot of money to conduct its
activities and develop products which H&M is offering to customers. This finance department
make budgets for production units and accordingly provide them funds. This interrelationship of
both functional units helps in making effective use of all resource, especially financial resources
and increasing entities productivity and efficiency (Edwards-Schachter and et. al., 2015).
CONCLUSION
The report concludes that the operational units of organisation play separate and unique
roles. These roles enables organisation to achieve its overall objectives and be most effective.
The interdependency of functional units also enables organisation to have the best results.
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REFERENCES
Books and Journals
Edwards-Schachter, M., and et. al., 2015. Disentangling competences: Interrelationships on
creativity, innovation and entrepreneurship. Thinking Skills and Creativity. 16. pp.27-
39.
Mazak, A. and Huemer, C., 2015, July. From business functions to control functions:
Transforming REA to ISA-95. In 2015 IEEE 17th Conference on Business
Informatics (Vol. 1, pp. 33-42). IEEE.
Yuen, K.F., and et. al., 2019. A taxonomy of resources for sustainable shipping management:
Their interrelationships and effects on business performance. Transportation Research
Part E: Logistics and Transportation Review. 128. pp.316-332.
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