Importance of Business Functions Report - MG408 Graduate Challenge

This report, prepared for the MG408 Graduate Challenge, delves into the critical importance of various business functions within an organization. The report examines the roles of marketing, finance, operations/production, and human resources, drawing upon academic texts and real-world examples of successful organizations like Tesco and Sainsbury. It highlights the interconnectedness of these functions, emphasizing how effective collaboration among them is essential for achieving organizational goals. The analysis includes how HR supports finance in budgeting, how R&D supports marketing and production, and how IT supports customer service. The report also demonstrates evidence-based writing and Harvard referencing, as required by the assignment brief, providing a comprehensive understanding of the topic.

Graduate Challenge

TABLE OF CONTENTS
Discussing the business functions of organizations...............................................................3
REFERENCES...........................................................................................................................5

Discussing the business functions of organizations
In the context of organization, manager plays a significant role in performing business
activities and functions which in turn makes significant contribution in the achievement of
goals. For the attainment of goals and objectives several business functions are undertaken by
the managers of firm in each and every sector. All these functions are highly interrelated with
each other in the following manner:
Human resources and Finance & accounting
In business, finance team plays a prominent role in preparing budgets for each
department. It estimates funds or capital requirements according to business activities and
then avail the same. Finance & accounting team of Tesco also raises funds, as per the
requirements, through the means of shares and loan. Manager analyzes or monitors cash flow
by doing comparison of standards with actual figures. This in turn helps in taking corrective
or significant action for improvement purpose.
It is an accountability of Tesco’s HR manager to prepare job description and
specification as per the employee’s positions. Further, HR team is required to conduct
training session for personnel so that they can carry out their job efficiently (Yuvaraj and
Divya, 2018). In addition to this, HR organizes session or programs for employees and
focuses on appraising performance with the motive to enhance their motivation level.
As per the requirements HR team of Tesco provides input to the finance department
about funds needed for the activities like recruitment, selection, training & development etc.
Referring such aspects, finance department of Tesco prepares budget and provide concerned
team with funds for operational practices.
Research & development with Sales & marketing and Production or operations:
Functions of this business team mainly include promotion and development of
significant promotional, pricing as well as sales strategies. In addition to this, marketing
department of Sainsbury takes decision pertaining to new product development, improvement
and extension aspects (Five Functions of business Organization, 2020). Further, marketing
team of concerned business unit also identifies target market and thereby sets optimal
marketing mix which helps in influencing decision making of customers.

Production recognized as another main function of business that emphasizes on
conversion of raw material into finished product prominently. In this, focus is placed by
Sainsbury on manufacturing products as per the needs, wants and desires of customers
(Business organization departments and functions, 2020). In this, concerned authorities
develop plan regarding labor, capital and land. Along with this, focus is laid on acquiring
resources and monitoring cost associated with production.
Contribution of R&D team of Sainsbury is highly significant in the context of gaining
competitive advantage over rivals. Moreover, it mainly focuses on identifying needs, wants
and expectation of customers. Accordingly, production department designs and manufactures
new product. The rationale behind this, managers of Sainsbury make focus on identifying gap
and thereby introduces new product. Furthermore, R&D also provide high level of assistance
in developing promotional strategies by providing sales team with information about the
mode that influence customer decision making.
Information technology and customer service
Business function of M&S in relation to customer service focuses on providing target
market with after sales services so that their queries can be resolved timely. By this,
satisfaction among customers can be enhanced and evolved to the significant level. This in
turn helps in increasing both productivity and profitability.
By doing assessment, it has identified that IT team of M&S focuses on designing and
uploading attractive advertisements that persuades customers about company’s offerings.
Moreover, now a day, customers spend more time on social networking sites such as
Facebook, Twitter, Instagram etc. Thus, by designing social media marketing strategies
customers can be attracted to the large extent. In addition to this, as per the requirements of
customer service department, IT team of M&S designs innovative applications and introduces
software’s as well.

REFERENCES
Books and Journals
Yuvaraj, S. and Divya, M., 2018. INFLUENCES OF SOCIAL MEDIA ON THE HUMAN
RESOURCE FUNCTIONS OF AN ORGANIZATION. Journal of Management
(JOM). 5(4).
Online
Business organization departments and functions. 2020. Online. Available through: <
https://www.open.edu/openlearn/money-business/organisations-and-management-
accounting/content-section-4.1>.
Five Functions of business Organization. 2020. Online. Available through: <
https://www.commercepk.com/five-functions-of-business-organization/>.