CW1 Portfolio Report: Body Shop's Management Functions and Culture

This report provides an overview of the essential functions of management, including human resources, marketing, and finance, and their significance in organizational success. The report uses The Body Shop as a case study to examine the roles of these functions and how they contribute to the company's operations. It discusses the importance of collaborative working practices and organizational culture, referencing Charles Handy's culture types. Furthermore, the report delves into financial management and reporting within The Body Shop, covering key aspects such as profit and loss accounts, balance sheets, and cash flow statements. The conclusion emphasizes the interconnectedness of these functions and their vital role in achieving business objectives. References to academic journals and books are included to support the analysis.

CW1 Portfolio

EXECUTIVE SUMMARY
All the functions of Management are equally important and plays a vital role in the success
of organisation. It is seen that the most important functions in an organisation our marketing
finance as well as human resource full stop in this report there is discussion believed it to all the
functions of Management as well as how culture helps the organisation in collaborative working.
Along with that the finance department has to formulate various reports for their functioning
smoothly the discussion related to same is also done in this report.

Contents
EXECUTIVE SUMMARY.............................................................................................................2
1. INTRODUCTION.......................................................................................................................5
MAIN BODY...................................................................................................................................5
2. Describe the role of HR, Marketing and finance functions within organisations..............5
3. Develop an understanding of collaborative working practices in the Body shop..............6
4. Financial management and reporting within the Body Shop.............................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
Books and Journals:..............................................................................................................10
Appendix........................................................................................................................................11
LO1................................................................................................................................................11
LO 2 and 3.....................................................................................................................................12

1. INTRODUCTION
There are various functions of Management that help the organisation to work in an
effective and efficient manner. The report is based on body shop which teams in skincare
cosmetics and perfumes (Opstad, 2018). It is a multinational organisation that has its franchise
stores in around 65 countries. In the current report there is discussion related to role of finance,
marketing and HR in the organisation. The importance of collaborative working practices in an
organisation or also discussed. Finance is one of the vital functions and helps in formulating
reports of the organisation.
MAIN BODY
2. Describe the role of HR, Marketing and finance functions within organisations
There are various functions in an organisation that are responsible for the smooth working
of the company (Colli and Perez, 2020). It is important to know that all the functions have their
own nature and all of them are important for the company. In relation to Body Shop the main
functions are discussed below:
2.1 Describe the role of HR within the Body shop
The human resource management plays a vital role in an organisation. They are the one
that manages the humans that is working population of the company. The human resource
department recruits the employees as well as motivate them to work effectively. The HR
Manager is responsible to manage the conflicts if any arise in the organisation (Olalla and
Merino, 2019).The human resource of Body Shop plays a vital role by analysing the demand of
employees and feeling the vacancies with the most talented employees that can work for the
organisation achieves their goals and objectives. It is seen that the organisation has proper
training and development that is provided by the human Resource Department. All the conflicts
that arise are also solved by the HR of the organisation on timely basis that helps in success of
the organisation
2.2 Describe the role of Marketing within your chosen company
Marketing is the process that is used by company to enhance the sales of the product
service that they are offering. It is said to be most important function of the organisation that
helps to persuade the buyers and attract them towards the organisation. The sales of an
organisation depend upon how effectively they are able to market their goods and services. In

relation to Body Shop the marketing department takes care of the needs and wants of the
customers and then tells the production department to manufacture the same. It is seen that it
helps to get the needs and wants of customers in an effective manner. Along with this Body Shop
is also focuses on digital marketing as it helps to attract more customers via Internet.
2.3 Describe the Finance Functions within an Organisation
Finance is called lifeblood of an organisation. It is seen that Financial Management is one
of the prominent activity in an organisation. It helps to know about the requirement of money
and availability of money in the organisation (Nicolescu and Nicolescu, 2019). Financial
function also helps to know about the utilisation of funds and how to earn benefits with its use.
In relation to Body Shop finance is considered as a major department as it helps to manage the
money of business. All the budgets are formulated by finance department and the liquid position
of the company is also maintained due to effective working of the financial department. The
Finance Department analyse the need of fund and decide the best source that will benefit the
company and will help them to operate effectively.
3. Develop an understanding of collaborative working practices in the Body shop
Culture plays a vital role in the success of an organisation. It is seen that culture is set of
beliefs, values and norms that are followed in the organisation. In relation to Body shop it is
multinational organisation and supports diverse culture (Lundan, 2018). The company takes
cares of all the employees and treaty all the employees equally. As it helps them to work
effectively and maintain good working environment.
Charles Handy's concept of organisational culture

 Power Culture: In terms of power culture, it is clear that power is concentrated in a few
hands with the authority to make decisions.It is clear that these individuals have special
advantages at work and are key decision-makers. They give orders to others, and they
must obey them.
 Task culture: Teams are formed in this culture to attain a specific goal or to address any
difficulty. The teams are formed to pursue a common goal and to attain the desired result
and outcome.
 Person Culture: Employees are given priority in the organisation in person culture, as
can be shown. All of the workers have decision-making authority.
 Role culture: Roles and responsibilities are given to all employees according to their
specialisation in a role culture. It enables people to work in their chosen field.
3.1 Describe the organisational culture in your company
In Body shop they divide their work into little tasks so that they may assign each task to a
team, allowing them to execute it more successfully and efficiently (Evens, Raats and von
Rimscha, 2017). When a group works together to achieve a common objective, it is typical to
find that conflicts arise, lowering team members' productivity and efficiency. It is critical for an
organisation to reduce conflicts because it has a negative impact on their productivity. It helps to
bring collaborative working practice in the organisation.
3.2 Briefly discuss the Management / Leadership style in the Body shop

In the case of Body shop, it is determined that the leaders use a democratic management
style. It contributes to the organization's effectiveness (Horst, Järventie-Thesleff and Baumann,
2019). All of the employees work efficiently, which aids in the achievement of the company's
aims and objectives. Employees are constantly a part of the decision-making process. Body shop
workers and employees are motivated, which helps in providing excellent service to consumers
who are also benefiting.Collaborative working practises are critical for a company's success
since they help The Body Shop achieve staff harmony.
4. Financial management and reporting within the Body Shop
It is necessary for an organisation that they should understand the importance of financial
management because there are many expenses which need to be bear by The Body Shop. For
that purpose, to analysing and maintaining the record of business transaction, companies need to
maintain some important account which is mentioned below:
4.1 Profit and Loss account
Profit and loss account is very necessary for Body Shop because they are dealing in many
business activities and incurs expenses as well as revenue. Profit and loss account is the account
which maintain the record of expenses and revenue which ultimately results to a net profit
(Gomez-Mejia, Basco,Gonzalez and Muller, 2020). Body Shop is able to determine the net profit
so that they can takes for the decision of purchasing or investments. It also shows the financial
performance of organisation.
4.2 Balance Sheet

Balance sheet is an account which recorded translations related to assets and liabilities. In
the balance sheet, it covers current as well as fixed assets. It also recorded borrowings and loans.
With the help of balance sheet, Body Shop is able to analyse the financial position of
organisation in the market. They are also able to find out financial ratios. With the help of
balance sheet, Body Shop can compare their financial position with their previous balance sheet.
4.3 Cash Flow statement
Cash flow statement is very important in now these days because it recorded all the
transactions related to cash items. It is analysed that company should make a cash flow statement
which include operational activities, financial and investing activities (Denicolai and Previtali,
2020). Cash flow statement helps to determine the liquidity position of an organisation which is
very necessary to meet daily expenses. An organisation should know the liquidity of company so
that they can take decisions regarding with daily operational activities. Cash flow statement
recorded all monetary cash related transactions which help in finding the liquidity position of
company.
CONCLUSION
It can be concluded from the above discussion that when organisation start their business
then they perform many functions such as HR function, marketing function and financial
functions. It is analysed that all three functions are very important for an organisation because
without them it is not possible to run the organisation in the market. HR functions related to
recruitment and selection of of human resource in the company. Marketing function is dealing
with promotion of goods and services in the market and financial function is the allocation of
finance to purchase important materials in order to run and survive organisation in the market. In
addition to this, it also covers financial management. When organisations are making policies
then they need to identify internal and external factors as well with the help of SWOT analysis
and PESTEL analysis. Marketing mix is an essential tool which used by organisation in order to
promote goods and services.

REFERENCES
Books and Journals:
Colli, A. and Perez, P. F., 2020. Historical methods in family business studies.In Handbook of
qualitative research methods for family business.Edward Elgar Publishing.
Denicolai, S. and Previtali, P., 2020. Precision Medicine: Implications for value chains and
business models in life sciences. Technological forecasting and social change, 151,
p.119767.
Evens, T., Raats, T. and von Rimscha, M. B., 2017. Business model innovation in news media
organisations–2018 special issue of the European Media Management Association
(emma).
Gomez-Mejia, L., and et. al., 2020.Family business and local development in
Iberoamerica. Cross Cultural & Strategic Management.
Horst, S.O., Järventie-Thesleff, R. and Baumann, S., 2019. The practice of shared inquiry: how
actors manage for strategy emergence. Journal of Media Business Studies, 16(3), pp.202-
229.
Lundan, S. M., 2018. From the editor: Engaging international business scholars with public
policy issues.
Nicolescu, L. and Nicolescu, C., 2019. Using PLS-SEM to build an employability confidence
model for higher education recipients in the field of business studies. Kybernetes.
Olalla, C.B. and Merino, A., 2019. Competences for sustainability in undergraduate business
studies: A content analysis of value-based course syllabi in Spanish universities. The
International Journal of Management Education, 17(2), pp.239-253.
Opstad, L., 2018. Success in business studies and mathematical background: The case of
Norway. Journal of Applied Research in Higher Education.

Appendix
LO1

LO 2 and 3