MG408: Business Functions and Their Impact on Business Success

This essay, written for the MG408 Graduate Challenge module, explores the critical importance of various business functions, including marketing, finance, operations/production, and human resources, in driving organizational success. The essay defines each function, emphasizing their individual contributions and the significance of their collaborative efforts. Using IKEA as a case study, the essay illustrates how these functions—from marketing's cost leadership strategy and finance's capital management to operations' production standards and HR's employee management—work together to achieve business objectives. The essay highlights the necessity of integrating these functions to overcome challenges and capitalize on opportunities, drawing on evidence-based writing and Harvard referencing to support its claims.

Student Name
INSTITUTIONAL AFFILIATION(S)
BUSINESS REPORT

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Business Functions Essay
Business functions like finance, marketing, operation/production and human resources
can be considered as those ongoing business activities which improves organisational
efficiency along with enhancing consumer experiences (Skripak, 2016). The following essay
will demonstrate how above-mentioned business functions enables success in businesses by
defining them individually as well as utilising evidence-based learning.
Profit earning remains the primary goal of every organisation and efficient marketing
strategy is the only way through which companies foster sales in targeted marketplace.
Marketing function usually involves basic research of market and approaching consumers for
making sales of services and products. To manage financial decisions of any company,
finance management plays a very critical role that not only assists managers in developing
business plans, but also in developing cost and budget related matters. The role of finance
managers includes managing risks and capital along with making cash flows and taking
significant financial decisions that keeps smooth flow in businesses (Skripak, 2016).
Production/operation is another significant function that assists businesses while
catering consumers’ needs through suitable production of goods or services and setting
effective distribution channels. The primary role of both of these functions is to provide
value-based solution according to the consumer demands. Production function deals with
methodical processes where raw materials are transformed into finished goods. Operations,
on the other hand engages in delivery and transportation function by engaging external and
internal suppliers thus creating valuable supply chain process (Sandybayev, 2019). To manage
human capital, the role human resource function is considered to be very crucial as HR
managers manages and find out ways through which human capital of firm can be managed
most effectively (Osabiya, 2015).

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To understand how different functions of business prove effective, an example of a
global company named IKEA is been used in this essay. The history of the company shows
that all its business functions remains collaborative while working in international business
environment (IKEA, 2017). Since its origin, the marketing strategy of IKEA follows cost
leadership under which the company provides its consumers with low cost furniture along
with maintaining quality in its products (Solomon, 2018). The role of finance function of IKEA
remains managing and fulfilling financial requirements of its store demands along with other
capital management. Every information is shared with finance department to ensure
safeguarding itself from future risk and every organisational need are managed in accord.
Even, the production and operation function of IKEA falls together with other business
functions where every IKEA product is processed and transported as per current business
standards, including environmental and CSR concerns (Sandybayev, 2019). Without efficient
human resource management, all the above functions could not be managed effectively that
evidences IKEA follows good human capital management. Additionally, IKEA has always
been in news for providing its employees with inspiring and attractive work conditions that
provides its employees with suitable and stimulated work atmosphere (IKEA, 2017).
On concluding note, it can be said that linking every business function together is
very significant for bringing ultimate success to an organisation. The above essay has utilised
case example of IKEA which shows the importance behind every business function working
together well to achieve organisation’s objectives.

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References
IKEA, (2017) It’s the people who make the company.
Available at:
https://www.ikea.com/ms/en_US/the_ikea_story/working_at_ikea/work_areas_human_resour
ces.html
(Accessed: 18 March 2019).
Osabiya, B. J. (2015) 'The effect of employees’ motivation on organizational performance',
Journal of Public Administration and Policy Research, 07(04), p. 62-75.
Sandybayev, A. (2019) 'Strategic Supply Chain Management Implementation: Case Study of
IKEA', Noble International Journal of Business and Management Research, 01(01), p. 5-9.
Skripak, S. J. (2016) Fundamentals of Business. Virginia: Virginia Tech.
Solomon, M. R. (2018) Use The IKEA Effect To Ramp Up Shopper Engagement.
Available at: https://www.forbes.com/sites/michaelrsolomon/2018/07/17/use-the-ikea-effect-
to-ramp-up-shopper-engagement/#6fb9ddf8780d
(Accessed: 18 March 2019).