MG408 The Graduate Challenge
CW1: Business Report
Demonstrating the Interconnectedness of Core Business Functions
Introduction
This report will discuss the four functions of business which are finance, operation/production, marketing and Human resources and their implication for ongoing business success in the context of Marks & Spencer (M&S) a multinational retailer from the UK. The company is bringing quality, value food, homeware and clothes to customers around the globe (corporate.marksandspencer.com, 2024a). The report will evaluate the importance of Interconnectedness and Collaboration of these business functions to gain long-term success.
Core Business Functions
Marketing
Marketing is a management process which is central to communicating Marks & Spencer clothing, food and homeware to their potential customers (Brassington and Pettitt, 2007). The activities include; identifying market trends, studying customer preferences, and developing campaigns that would potentially enhance brand awareness. The ‘Shwopping’ campaign for example is all about clothes recycling.
Finance
Budgeting, financial planning, maintaining profitability and the management of the finances of this company fall under the responsibility of the finance department in M&S (Wood and Sangster, 2015). The financial team was involved in strategic investments e-commerce and partnerships, with Ocado to build up its online grocery sales division for M&S (bbc.com, 2020a).
Operations/Production
Operations present in Marks & Spencer organization seek to ensure that the company promptly delivers good products to the customers. Some of the business functions are supply chain, logistics and distribution, and inventory. M&S provided an example of how operations support sustainability through Plan A which policy is to make M&S a zero-waste, carbon-neutral business (corporate.marksandspencer.com, 2024b).
Human Resources (HR)
Recruitment, talent management, human capital management, and organizational culture are the common HRM practices. Key elements of the strategy within M&S include; Employee engagement; M&S has a focus on employee engagement to support them regardless of their rank in the organization (Worthington and Britton, 2006).
Interconnectedness and Collaboration
Cross-functional Integrated working is crucial for M&S's success. The marketing and finance departments collaborate and come up with advertisements that need to be manufactured within those budgets. In the same way, operations and HR ensure that an organization has the right workforce output especially in the busy season. Another is between the marketing and operational departments during festive seasons such as Christmas periods. price-slicing offers given to attract consumer attention in 2023 resulting in sales rising 8.1% (bbc.com, 2024b), whilst operation guarantees merchandise availability and product delivery. Finance evaluates the effectiveness and profitability of these campaigns for appropriative policy-making.
Importance of business functions working together
The integration of these business functions is crucial to the future of Marks & Spencer. Finance ensures budget allocation for marketing campaigns and daily operations. Marketing initiates and sustains customer interactions and helps make more sales, while operations guarantee timely and efficient delivery. Human Resources support by overseeing talent to make sure that the workforce is appropriate for delivering corporate goals. Fully integrated activities lead to improved sales, profitability and customer satisfaction. This cross-functioning guarantees the company’s efficiency and enables it to respond appropriately to promote sustained growth.
Conclusion
In conclusion, all four fundamental business processes are fully integrated at Marks & Spencer. The success of M&S has been underpinned by good cross-functional integration that guides the company’s financial, operational marketing and human resource management strategies. M&S has encouraged teamwork to overcome the barriers of change, and response to market changes in the UK retail industry.
References
bbc.com (2020a). Ocado says M&S switchover 'successful' after rocky start. [Online] Available at: https://www.bbc.com/news/business-54158825 [Accessed on October 9, 2024].
bbc.com (2024b). Tesco and M&S report strong Christmas sales. [Online] Available at: https://www.bbc.com/news/business-67943105 [Accessed on October 9, 2024].
Brassington, F. and Pettitt, S. (2007). Essentials of marketing. Pearson education.
corporate.marksandspencer.com (2024a). About Us. [Online] Available at: https://corporate.marksandspencer.com/about-us [Accessed on October 9, 2024].
corporate.marksandspencer.com (2024b). Plan a Our Planet. [Online] Available at: https://corporate.marksandspencer.com/sustainability/plan-a-our-planet [Accessed on October 9, 2024].
Wood, F. and Sangster, A. (2015). Frank Wood's Business Accounting Volume 2 PDF eBook. Pearson Higher Ed.
Worthington, I. and Britton, C. (2006). The business environment. Pearson Education.
Bibliography
Boxall, P. and Purcell, J. (2022). Strategy and human resource management. Bloomsbury Publishing.
