Read this report to know about purpose and value of business functions.
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The global business environment refers to the environment in various dominant countries, including factors extracellular to the domestic environment of the administration, affecting decision component on resource utilisation and capabilities. It includes various factors – politics, culture, geographic location, economic status and technology in the international environment (Black, Morrison and Gregersen, 2013). Various purpose and value of business functions are explained in this report. Further, how they are interrelated with the other functions of the value business is also described in this project.
A. The VALUE CHAIN AND BUSINESS FUNCTIONS
Business function 1
Marketing:- Marketing function refers to the role which assist a company in determining and sourcing possibly flourishing products for the market in which they direct and encourage their products by distinguishing them from related products. It is very important part of any business. It involves various functions such as – market information, product designing and development, planning, customer support, financing, packaging, labelling, product distribution, standardisation, grading, etc. In other words it is the process of developing relations with customers and satisfying them.
Purpose of marketing function
Marketing function is very important in an organisation to exchange its products and services. Its main objective is to increase profits by selling products and satisfying customers. Different purposes of marketing function are explained under.
- Creating demand:- One of the main purpose of marketing function is to stimulate demand through different means. In this objective the marketing department make appropriate efforts to identify customer's needs, preferences and tastes (Briscoe, Tarique and Schuler, 2012. The purpose of determining consumer's needs is to manufacture products and services according to their demands.
- Market share:- Its is very important objective of every organisation to increase its share in the market. The marketing department assist the businesses in increasing their market value. They make various attempts such as – innovative packaging, progressive advertising, promoting sales activities, etc. to compete with the other combative products in the market, in order to increase market share.
- Customer satisfaction:- It is one of the main purpose of marketing function to satisfy their customers. The marketing manager determine customer's requirements and demands before providing any product or services to them. In modern business era, only selling products are not considered as customer satisfaction (Caligiuri and Tarique, 2012). In recent years the marketing is consumer oriented. It starts with the customer and its main motive is to fully satisfy them.
- Profit generation:- The marketing department is vital element in generating revenue in any organisation. It make appropriate attempts to earn high profits by offering products and service to the customers according to their needs. Generating revenue is very important for any organisation, as it cannot exist in the market without earning profits. Therefore, revenue is essential for growth and expansion of organisation.
Value of marketing function
Marketing play very vital role in setting relationships among organisations offering products or services and customers. It is also useful for performing various tasks such as – branding, advertising, participation in promotion activities, customer interaction, etc. It assist an organisation in movement, transfer and exchange of products. Goods are reached to customers with the help of retailers,wholesalers, etc. as it is valuable for costumers and producers. It is also important because it help in maintaining and increasing living standard of people by providing uninterrupted products and services to customers at sensible prices. Further it create employment opportunities as, it is a complex mechanism and requires many people to perform its various functions – selling, warehousing, financing, buying, standardisation, transport, risk bearing, etc. In the modern business world marketing role is broad as, it provide employment to lot of people. By this way it lead to continuous production and profitability (Cavusgil and Knight, 2015). Marketing function's performance is very valuable as it is the single way of generating revenue and earning profits in the business organisation. Various marketing techniques assist in regulating effective production, as a result it provide basis for effective decision making.
Interrelation of marketing with other functions
All business functions are interrelated with each other to pursue the organisation's overall objectives. According to marketing concept different departments are required to work together, in order to meet and satisfy customer's demands and expectations. It coordinate the internal activities of marketing with finance, sales , human resource, operations and many other organisation functions to provide services to customers. Other departments determine company goals and issues form their point of view and make attempts to fulfil them.
Business function 2
Human resource management:- Human resource management refers to the the sphere of organisation which performs functions like – recruitment, selection, training, staffing, etc. It is a planned approach, in order to mange individuals and culture in the organisation (Ferraro and Briody, 2013). The HR department guide and support the organisational personnel to perform effectively and attain prescribed goals and objectives.
Purpose of Human Resource functions
Human resource management is concerned with recruiting, selecting, developing skills and motivating individuals to accomplish desired goals and objectives. Along with this, it fulfil different purposes in the organisation which are explained below.
- Effective utilisation of resources:- It is one of the main purpose of human resource department to make optimum utilisation of resources. It provide appropriate training to individuals to improve their skills, talent, knowledge, etc. As a result providing effective training lead to productive employees. The HR manager ensured that employees are effectively used to achieve organisational objectives.
- Develop resources:- It is also one of the important objectives of human resource management. It establish programs to improve the effectiveness of both organisation and individuals. It ensures that employees that the employees are able to do new or other things and then provide them opportunities such as training, coaching, succession planning, development, mentoring, etc. By this way it develop resources in the organisation.
- Promoting culture:- The human resource manager create a pleasant and enjoyable working atmosphere for the employees. It is ensured that individuals working in the organisation are happy or not. The HRM determines everyone's values, feelings, behaviours, etc. and respect their ideas, views or opinions. By this way it promotes company culture.
- Employment relations:- Employment relations are very vital component in any organisation. The human resource management aims at maintaining good relationships between employees and the employer (Osland, 2013). Having strong employment relations encourage employees to work effectively and increase their productivity.
Value of human resource management
Human resource management is very important in an organisation, as it assist in building a good professional workforce. It performs recruitment, selection and training responsibilities in the organisation (Sassen, 2016). It execute training programmes, provide teamwork management, systematic hiring process, scheduling assistance, monitoring, etc. Furthermore, it is valuable because it monitors culture of the company and make it productive and creative , in order to grow and expand the business. It also collaborate with other departments in the organisation and develop innovative ideas and practices in the administration. Along with this the human resource management develop a strategic, interchangeable and fair compensation plan. They support other department's managers in deciding individuals salary ranges in the organisation. They find out, suggest, apply employee advantages and compensation curriculum, which will attract employees and help in retaining superior workers. They also provide strategies and implement them in the organisation for its growth and expansion. By performing different responsibilities and contributing in an organisation is considered an important function. Along with these it create better environment at workplace by involving in employees activities. It also help in reducing conflicts in the organisation. Lastly it can be said that human resource management is very valuable and essential in an organisation.
Human resource link with other functions
Maintaining relations among human resource functions and other value chain functions is critical and essential for overall success and expansion of business. They have advisory relationships as they provide suggestions to top managers regarding human resource policies. It recruit employees, monitor activities, provide training for various departments such as – marketing, sales finance, operations, etc. in the organisation. By helping the other divisions in their different operations it is interrelated with the them and value chain of business (Voegtlin, Patzer and Scherer, 2012).
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B. PERSONAL LEARNING
From this study I have learned that global business environment is the atmosphere or surrounding in which various sovereign countries are working and providing their services. It includes various factors – political, legal, social, technological and environmental factors which affects the performance of organisations. Further I had received more information about marketing functions. It is a function which helps an organisation to offer their products and services to customers. Further, it identify consumers demand by analysing markets and manufacture goods and services considering their requirements. Providing products according to customer's tastes and preferences will lead to earn more profit and growth in the business. Moreover, working with my personal tutors I gained knowledge about different purpose of marketing. In an organisation marketing function is required to fulfil various business objectives. It create demand for products and services with the help of various measures. Along with this it make best attempts to provide best services to customers. The advantage of serving customers effectively is it lead to their satisfaction, develop brand image and attract them to purchase the same products next time. It also generate revenues for an organisation by offering effective services to their clients. Furthermore, it increases market share of an organisation by making various efforts, providing new products, and create competitive advantage by comparing them with another similar products of other companies. It also cooperate and coordinate with other departments in performing their functions. I have also learned that functions of various departments are interrelated with other divisions in the organisation.
Further, working with my peers I have collected and received a lot of information and knowledge about human resource management. The HRM department is the lifeblood of any organisation because it performs many responsibilities such as – recruitment, selection, training, staffing, etc. It manages human resources and the overall administration. It utilise resources effectively and efficiently. It provide training to employees to improve their skills, talent, knowledge, etc. to improve their performance and productivity. One good thing I have learned that it promote company culture in the organisation. Individuals ideas, thoughts, opinions, etc. are determined and considered in the decision making of the organisation. The human resource function is very valuable as it cooperate and coordinate various activities with other departments. Furthermore, it comply regulations and laws to the organisation to provide employees their rights and protect them from unfair practices. It also make efforts to improve and maintain better relations between employees and the organisation. Lastly I want to say that I have learned many new things about human resource management and marketing with the help of this report.
It is concluded from the above project report that business functions are vital in any organisation to manage daily operations in the business environment at global level. Marketing is an important function which help in selling companies products by identifying customers demand and satisfying them. It assist an organisation in earning profits by performing various functions. Further human resource management also have great contribution in recruiting, selecting and developing employees in the organisation. Both marketing and human resource functions are interrelated with other departments as they support them in performing many operations.
Books and Journals
Black, J.S., Morrison, A.J. and Gregersen, H.B., 2013. Global explorers: The next generation of leaders. Routledge.
Briscoe, D., Tarique, I. and Schuler, R., 2012. International human resource management: Policies and practices for multinational enterprises. Routledge.
Caligiuri, P. and Tarique, I., 2012. Dynamic cross-cultural competencies and global leadership effectiveness. Journal of World Business. 47(4). pp.612-622.
Cavusgil, S.T. and Knight, G., 2015. The born global firm: An entrepreneurial and capabilities perspective on early and rapid internationalization. Journal of International Business Studies.46(1). pp.3-16.
Crane, A., Matten, D. and Spence, L., 2013. Corporate social responsibility in a global context.
Ferraro, G.P. and Briody, E.K., 2013. The cultural dimension of global business. Upper Saddle River: Pearson.
Gligor, D.M. and Holcomb, M.C., 2012. Understanding the role of logistics capabilities in achieving supply chain agility: a systematic literature review. Supply Chain Management: An International Journal. 17(4). pp.438-453.
Osland, J.S., 2013. An overview of the global leadership literature. In Global Leadership 2e (pp. 52-91). Routledge.
Sassen, S., 2016. The Global City: Strategic Site, New Frontier. In Managing Urban Futures (pp. 89-104). Routledge.
Voegtlin, C., Patzer, M. and Scherer, A.G., 2012. Responsible leadership in global business: A new approach to leadership and its multi-level outcomes. Journal of Business Ethics.105(1). pp.1-16.