Compare and contrast an existing organization’s three major functions (i.e., finance, marketing, and operations), and then justify the interdependence that operations have to finance and marketing. Provide examples to support your rationale.
The activities expected from a finance department cover a wide range from basic bookkeeping to providing information to assisting managers in making strategic decisions. What to expect from the finance department will depend largely on factors such as how much involvement the owner/manager has in the organization. At the base level, the finance department will be responsible for all the day to day transactional accounting for the business. This will include the tracking of all transactions and the management of any government reporting. In very small owner-managed businesses this role is often filled by a family member with accounting experience. An outside accounting firm is usually used for annual financial statements and returns. In larger organizations this role will extend right through to preparing the financial statements with an external auditor engaged for assurance purposes. The finance department is also responsible for management of the organization’s cash flow and ensuring there are enough funds available to meet the day to day payments (Jeffrey, 2012). This area also encompasses the credit and collections policies for the company’s customers, to ensure the organization is paid on time, and that there is a payment policy for the company’s suppliers. In most organizations there will be some form of forecast prepared on a regular basis to systematically calculate the ongoing cash needs.
When it comes to the marketing department, it plays a vital role in promoting the business and mission of an organization. It serves as the face of your company, coordinating and producing all materials representing the business. It is the Marketing Department's job to reach out to prospects, customers, investors and/or the community, and create an overarching image that represents the company in a positive light—that is, the brand. The perceptions and feelings formed about an organization, its products and services, and its performance is what is known as its “brand.” The Marketing Department is responsible for creating meaningful messages through words, ideas, images, and names that deliver upon the promises or benefits an organization wishes to make with its customers. Furthermore, the Marketing Department is responsible for ensuring that messages and images are delivered consistently, by every member of the organization. Lastly an operations department is responsible for running your business successfully. It has the ultimate accountability for profit and loss, and seeks to maximize return on investment for the shareholders (Jeffrey, 2012). The members of this department are ultimately responsible for the success of your business, and as such, maintain considerable power in your company. While the operations department is responsible for the bottom line, it also oversees the other departments in your organization, as well as the development of your employees and customers.
Reference
Jeffrey, A. (2012). Management and Organization Theory: A Jossey-Bass Reader. NY: John Wiley & Sons.
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