How business functions link together

• Business functions are interdependent. A decision in one function affects the others.
• Example: marketing forecasts higher demand, so operations plans more production, HR may need more staff, and finance has to pay for stock and wages.
• A promotion that doubles orders gives operations more to make and deliver straight away.
• Finance can limit what other functions spend. A bank loan can let HR recruit.
• Financial information, such as a falling margin, is a warning. A sensible response is to find the cause, for example checking if supplier prices have risen.
• Risk and reward: a risky decision may bring higher profit, but the chance of a loss is set against it. Planning reduces risk but never removes it.

Interdependent

Depending on each other, so a change in one affects the others.

Business function

A main area of a business, such as marketing, operations, finance or HR.

Risk and reward

The chance of loss set against the chance of higher profit.

• Writing about one function only. This topic needs you to show how functions affect each other.
• Saying each function should work alone so they do not clash. Functions have different jobs, but they must co-operate.
• Reacting to a falling margin without finding out the cause first. Cutting prices would lower it further.

5 questions, 7 marks. Answer, then press Check. The marking guide explains how the marks are worked out. Nothing is saved.