MG408 Business Report: Exploring the Roles of Key Business Functions

This report defines the roles of various business functions, including marketing, finance, operations/production, and human resources, and explains how these functions contribute to organizational success through effective collaboration. It emphasizes that profit earning is the primary objective, achieved through targeted sales via marketing. Finance is critical for decision-making, budgeting, and risk management. Production and operations cater to consumer needs by providing value-based solutions, while human resources manages the firm's human capital through recruitment, training, and appraisals. IKEA is presented as an example of a company that succeeds by aligning all business functions, from marketing low-cost furniture to efficient production and inspiring human resource management. The report concludes that linking every business function brings success, as demonstrated by IKEA's international achievements. Desklib provides access to similar solved assignments and past papers for students.

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Business Report
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Essay
To manage business successfully, it takes a great deal of understanding different
business functions which demonstrates core academic skills including evidence-based
learning. The following essay will define roles of different business functions namely
marketing, finance, operations/production and human resources to explain how these
functions enables success in organisations while working together appropriately.
In any organisation, the primary objective behind its business always remains profit
earning through targeted sales that can be achieved only by effective marketing function.
Marketing function usually involves initial research, packaging, and approaching consumers
to make sales of product or services. Finance, on the other hand proves to be more critical
function while taking organisational decision starting from a business plan, budgeting and
cash flow decisions to capital structure including how to manage risks and costs. In any firm,
accounting is the only way that can keep score of organisational activities, but finance gives
life to business (Skripak, 2016).
Production and operation perform the role of catering needs of consumers through
providing goods and services along with creating value-based solutions for consumers.
Production and operation function are about applying business management and
organisational concept in creation of goods and services. Where production involves
scientific processes and transformation of raw materials to finished good, operation function
adds value by delivering the same by engaging internal and external vendors thereby creating
suitable supply chain systems. Human resource is another significant business function in
which a human resource manager oversees and suggests business owners about different
ways through which human capital of the firm can be managed successfully. The primary

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role of HR managers involves recruitment, selection, hiring, training and appraisals to meet
specific business goals and objectives (Collins, 2012).
IKEA is one of the best examples that proves how an organisation realises success by
making every business function work together properly. The strategy of IKEA remains
providing low cost furniture to its consumers for which the company follows marketing
strategies that allows each IKEA stores with appropriate details as per modern marketing mix
of the company. Finance has always been in charge of follow-up and fulfilling financial
requirements for IKEA where the finance department provides sufficient information to other
management teams thereby ensuring fulfilment of core business demands (Harapiak, 2013).
IKEA’s success credit can be given to its production, processes and operations also that gives
its environmental concern stance. For instance, the company uses clever design and
packaging that enables more items to fit in a single crate which means few delivery journeys
(Shoulberg, 2018). The human resource management of the firm shows that IKEA always
lead its people to work attractively and inspiringly that create stimulated and enjoyable work
environment. In fact, the success of IKEA business highly depends on continuous
development of its co-workers and thus the company gives utmost care in its human
resources function (IKEA, 2017).
The above essay has defined roles of different business functions demonstrating core
academic skills. The essay concludes with a note that linking every business function together
always bring success to firms. This has been proven by IKEA and its success in international
market that shows how business functions work together in successful firms.

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References
Collins, K. 1st ed (2012) An Introduction To Business, :Creative Commons.
Harapiak, C. (2013) 'IKEA’s International Expansion', International Journal of Business
Knowledge and Innovation in Practice, 01(01), p. 21-42.
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 17 March 2019).
Shoulberg, W. (2018) Why Ikea Succeeds Around The World While Other Retailers Falter.
Available at: https://www.forbes.com/sites/warrenshoulberg/2018/07/30/put-another-stamp-
on-the-ikea-passport/#722cde4a3f7c
(Accessed 17 March 2019).
Skripak, S. J. (2016) Fundamentals of Business. Virginia: Virginia Tech.