Unit 7 Interdependent Nature of Business

Question 1

How does the operations function affect human resources function?

Answer 1

The business operations function may want to increase the number of customers it has. It is likely to need to increase the number of gardeners it employs, in order to carry out work for new customers.

Question 2

How does the business operations function affect the finance function?

Answer 2

• A business is looking to expand production by building a new factory
• The finance department will have to arrange finance for this, perhaps selling shares or taking out a bank loan

Question 3

How does the business operations function affect marketing?

Answer 3

• A firm wishes to increase production
• The marketing department may decide to increase advertising and other marketing activities to make sure the business can sell the increased output. May change its marketing to national rather than just local.

Question 4

How does the finance function affect the marketing function?

Answer 4

• A firm may want to increase its marketing to introduce a new product or because of increased competition
• The finance function will have to finance this spending, perhaps by arranging an overdraft or finding the money in the business’ reserves