How functional areas link
In this assignment I will be discussing how functional areas link with each other within Tesco.
The functional areas in any business can’t work alone; they must interact with other departments and have good communications within them.
Most functional areas in Tesco deal with external people or organisations, these are called external links. For example, suppliers, which are usually contacted by the purchasing or production function to make orders; the R&D department then contacts specialist suppliers and research if the products they offer are of good quality; the finance department will check the suppliers invoices before they are paid to ensure there are no mistakes.
Tesco’s staff will be contacted by the customers if they have any queries relating to the products, services or payments. The functional areas that can be involved in this are customer service and finance.
Banks are contacted by the finance function about any issues that are related to bank accounts, loans or overdraft facilities.
Functional areas such as HR may also contact government agencies, for example Job Centre Plus about any job vacancies that might be available in Tesco; and the Finance function will have to communicate with the HMRC to give account of how Tesco is doing financially and about the payroll of the staff. Sales Distribution Human Resources
Finance The sales function and the finance function link to each other in Tesco because sales is responsible for selling the products/services, and then it has to give all the information to the finance department to record all money earned from sales. Based on the information that the sales function gives, the finance function can work out the profit Tesco is making, check if payments from customers are being made, and chase overdue payments. This is important for the success of Tesco because if the finance doesn’t know how the sales are doing it cannot draw up any conclusions on how good or bad the finance of the company is to inform
The functional areas in any business can’t work alone; they must interact with other departments and have good communications within them.
Most functional areas in Tesco deal with external people or organisations, these are called external links. For example, suppliers, which are usually contacted by the purchasing or production function to make orders; the R&D department then contacts specialist suppliers and research if the products they offer are of good quality; the finance department will check the suppliers invoices before they are paid to ensure there are no mistakes.
Tesco’s staff will be contacted by the customers if they have any queries relating to the products, services or payments. The functional areas that can be involved in this are customer service and finance.
Banks are contacted by the finance function about any issues that are related to bank accounts, loans or overdraft facilities.
Functional areas such as HR may also contact government agencies, for example Job Centre Plus about any job vacancies that might be available in Tesco; and the Finance function will have to communicate with the HMRC to give account of how Tesco is doing financially and about the payroll of the staff. Sales Distribution Human Resources
Finance The sales function and the finance function link to each other in Tesco because sales is responsible for selling the products/services, and then it has to give all the information to the finance department to record all money earned from sales. Based on the information that the sales function gives, the finance function can work out the profit Tesco is making, check if payments from customers are being made, and chase overdue payments. This is important for the success of Tesco because if the finance doesn’t know how the sales are doing it cannot draw up any conclusions on how good or bad the finance of the company is to inform