3 Case study: Thorpe Park and Tesco Company: Thorpe ParkMission: achieve aims and objectivesCompany: TescoMission: achieve aims and objectivesWhich departments would help these companies complete their missions?Human ResourcesFinance & AccountsAdministrationIT SupportMarketingSalesCustomer ServicesResearch & Development.Teacher’s note: The jobs each functional area performs are given below:Human Resources takes care of the staffFinance & Accounts tracks the business’s revenue and costsAdministration performs clerical dutiesIT support sets up the computers for the staff and deals with their problemsMarketing finds out what customers want and tries to give it to themSales tries to sell the products to the customersCustomer Services responds to the needs of customersResearch and Development designs and improves goods and services.Information about Thorpe Park can be found at this address:Information about Tesco can be found at this address:These weblinks were working correctly at the time of publication. Boardworks takes no responsibility for the content of external sites.Do you know what jobs each functional area performs?
4 Human Resources (HR)Human Resources (HR), also known as Personnel, is the functional area in a business that performs tasks relating directly to the employees:
6 Finance and AccountsFinance and Accounts record and manage the revenue and costs of the business to calculate how much profit or loss it has made.Teacher’s note: Finance and Accounts affects other functional areas in the following ways:It sets the budgets of the other departments, e.g. how much the marketing department may spend on a campaign, how much Human Resources may spend on recruiting staff, how much Operations may spend on acquiring resources, etc.Failure to keep the accounts correctly could lead to the business going bankrupt or being prosecuted by the Inland Revenue, which would force the business to close.Poor budgeting would prevent the business from being able to improve through personal growth or acquisitions.Information about Tesco’s financial accounts can be found at this address:This weblink was working correctly at the time of publication. Boardworks takes no responsibility for the content of external sites.How do you think the Finance and Accounts department affects the other areas?
12 Research and Development (R&D) Unless a business is continually expanding and developing its range of products, it is unlikely to succeed.Sales for a new product should gradually increase – provided that the marketing mix fits the market requirements. However, sales will begin to level and then decline. This sequence is called the product life cycle.Product life cycleDeclining sales reduce the business’s income, so large businesses often have a Research and Development team to improve their existing products and to invent new ones.Teacher’s note: The Research and Design team may affect the other departments in the following ways:New designs may require extra staff which would create more work for HR.It cannot design products which would go over the budget set by Finance and Accounts.It probably requires lots of new software for the IT Support team to install.New products may force Operations to acquire new resources and production techniques.Marketing would need to research whether the new designs are successful.The Sales and Customer Services staff would need to learn how to use the new products in order to advise customers.Information about product life cycles can be found at this address:This weblink was working correctly at the time of publication. Boardworks takes no responsibility for the content of external sites.How does the Research and Development function affect the other departments?
15 Interdependence situations To highlight the interdependence of different functional areas, think about these scenarios.Explain the likely effect on the achievement of targets if the following situations occurred at Cadbury’s:Marketing do not advise their Production department that they have launched a £1 million advertising campaign for Giant Buttons.Finance do not tell Production that there is a 5% budget cut.Customer Services do not inform Research and Development that there have been a record number of complaints about a recently launched chocolate bar.Finance do not advise IT Support that they have purchased new financial management software.Teacher’s note:If Marketing do not advise Production of their advertising campaign, the increased sales that Marketing will hope to make as a result might mean that Production are not producing enough Giant Buttons to keep up with demand.If Finance do not tell Production about the reduction in budget, then Production will continue to work to their original figure and then find that they have spent over their budget.If Customer Services do not inform Research and Development about the number of complaints they have had, Research and Development will not have any knowledge of how successful the product has been. If they do not know, they cannot try to rectify the situation and may make similar mistakes in the future.If Finance do not advise IT Support that they have purchased new software, IT Support may not be able to help Finance if they have any problems using the software.As an extension activity, you may wish to ask students to identify three issues on which different functional areas would have to communicate and explain which departments would be involved.15