7 The interdependent nature of business GapFill

There are a range of functional areas within business. These include operations, finance, human resources and  meetingsdiariesmarketingteams. None of these works independently, though some links are  more difficultolderclearervaguer than others. An idea for a new advertising campaign requires input from  supervisors marketingoperativesoperations, advising whether the products advertised can be ready for sale in time. Equally,  human resourcesmarketingmeetingsfinance has to advise whether the campaign is likely to be cost-effective. 

When new senior staff are required, human resources can advise on the  moneyquantitydetailrange of salaries paid for similar roles by competitors. However, finance will need to calculate the total cost of the new employee. This includes employer's National Insurance contributions, and  mealspension contributionsuniformschildcare vouchers.  The cost of an employee to the business is much higher than the salary quoted in the  messageemailadvertisementnewspaper. The business owners need to be aware how difficult it might be to match local salaries.

The finance function can assist decision-making by carrying out calculations to measure the difference in  staffpeopleprofitprospects this year compared to last year. This helps to focus on whether  staffuniformscostsrevenues should be reduced in order to increase net profit, or if costs of sales are reducing gross profit. Some businesses (particularly hospitality businesses) rely on seasonal sales to make profit for the year. Finance can monitor these sales against the previous season and advise if sales are dropping. Marketing may then devise a  campaignsalarywagemessage to help increase sales.  Interdependence of the functional areas allows specialists in each area to  contributeexplainreduceinnovate their expertise in creating a well-informed decision-making process.