Interrelationship of Business Functions
This report provides an explanation of the interrelationships of the four key functions of a business. Furthermore, it outlines the effects on the business of the inefficient management of these functions.
Each business has four key functions which support the main goals of the business. These functions include operations, employment relations, marketing and accounting & finance. These functions interact with each other in order to ensure smooth running of the business and also to achieve the business’ objectives. This is known as the interrelationship between the business functions.
The Interrelationship of the Business Functions
The four key functions of a business rely on each other to achieve the goals of the business. The role of operations is to organise the production of goods and services. This involves providing a steady supply of materials, an efficient production of the good or service and distribution of the final output. The employment relations function is a vital to a business. This function ensures that a business has the correct number of staff and also that the staff is trained with the appropriate skills and experience. The marketing function provides a link between the business and its customers. Without this function, a business would not have a direction to proceed in as it will not be able to satisfy consumer demands. This function also promotes the goods and services of a business. The accounting and finance function of a business ensures the necessary financial resources are available for the running of the business. It also controls these resources. It also provides reports on the general financial status of the business for its stakeholders and future prospectsprospectors.
The Effect of Inefficient Management of Functions
The interrelationship between the functions ensures that a change in one area will have an impact on all other areas. The...
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