Interdependance of operations with other key business functions
Assess the relationship between operations and other functions using actual businesses
A vital component for a successful business is to possess effective interdependent relationships between operations and other key business functions (i.e. marketing, finance, human resources). Interdependence occurs where each function works together with other functions, as well as relies on others, to achieve the business’s overall goal (making a profit). Without this important relationship, the functions will not be able to achieve their own goals and the business’s short and long-term objectives.
Operations and marketing work together to develop and produce a product that is desired by the consumer market. The marketing function conducts market research in order to determine what the market needs and/or wants. Using such information, marketing develops the desired product, and the operations function produces it. This can drive sales and increase the business’s market share, allowing the business to achieve its objectives (growth and profit). An example of an effective marketing and operations relationship can be seen in Apple’s 1984 Superbowl TV commercial. Directed by Ridley Scott, the commercial generated remarkable sales for Apple’s Macintosh computer, and the demand for this product outstripped supply. This caused an expansion of Macintosh production and Apple’s operations as a whole. Today, Apple is a household name and had made a record-breaking $18 billion in the fourth quarter of 2014*. As seen with Apple, the relationship between operations and marketing is vital, as it will influence the business’s sales and market share.
Funding for operations is monitored and controlled by the finance function. Without it, operations cannot occur or grow. Finance is needed to determine budgets, purchase inputs, pay wages and so on, as well as record and store money earned and owed. For example, Google expanded its operations in 2004 through an Initial Public Offering, which
A vital component for a successful business is to possess effective interdependent relationships between operations and other key business functions (i.e. marketing, finance, human resources). Interdependence occurs where each function works together with other functions, as well as relies on others, to achieve the business’s overall goal (making a profit). Without this important relationship, the functions will not be able to achieve their own goals and the business’s short and long-term objectives.
Operations and marketing work together to develop and produce a product that is desired by the consumer market. The marketing function conducts market research in order to determine what the market needs and/or wants. Using such information, marketing develops the desired product, and the operations function produces it. This can drive sales and increase the business’s market share, allowing the business to achieve its objectives (growth and profit). An example of an effective marketing and operations relationship can be seen in Apple’s 1984 Superbowl TV commercial. Directed by Ridley Scott, the commercial generated remarkable sales for Apple’s Macintosh computer, and the demand for this product outstripped supply. This caused an expansion of Macintosh production and Apple’s operations as a whole. Today, Apple is a household name and had made a record-breaking $18 billion in the fourth quarter of 2014*. As seen with Apple, the relationship between operations and marketing is vital, as it will influence the business’s sales and market share.
Funding for operations is monitored and controlled by the finance function. Without it, operations cannot occur or grow. Finance is needed to determine budgets, purchase inputs, pay wages and so on, as well as record and store money earned and owed. For example, Google expanded its operations in 2004 through an Initial Public Offering, which