Business Studies- Operations- Interdependence of other Key Business Functions

Interdependence of Operations on Marketing

-Marketing deals with the selling of products that have beeb through the production process -Need for product design (marketing requirement) affects the operations function

Interdependence of Operations on Finance

-Operations must design a product or deliver a service which is able to sell and make a profit -If operations reduce the cost of production then profit margins can be increased -If product is designed of a higher quality then a higher price may be charged and thus a higher revenue earnt

Interdependence of Operations on Human Resources

-Technologies in operations process change the way employees conduct their jobs, making for faster processing speeds and decreased expenses on wages and salaries for the employees -Technology in the operations process also changed the qualifications and skills sought in an employee -Outsourcing creates a reliance upon technology to communicate between human resources

Name other key business functions

Human Resources, Finance and Marketing

Interdependence

Refers to the mutual dependence that the key functions have on one another. The key business functions work best when they overlap and employees work towards common goals. Each function area depends on the support of the others if it is to perform at capacity.

Profitability

The excess of revenue or income over expenses or costs.

Outsourcing

The use of specialised outside providers of business services to undertake the task ordinarily done within the business.