Question

Discuss the nature and role of the following business functions in strategy implementation.

1. Sales and Marketing:

2. Finance and Accounting

3. Human Resource

Answer 1

For an effective strategy implementation, the co-ordination of all these departments is very important and this defines the success rate of any company.

(1) Sales and Marketing

Sales refers to the act of providing goods and services to the customers in exchange for money. In other words, it is the income-generating process for a business. This is a very important aspect and all other procedures related to the business, ultimately focusses on the sale of its end product.

Marketing is the process of promotion and distribution of goods or services to the people for creating an interest and thereby encouraging them to buy it. A successful marketing strategy is one kind of 'awareness campaign' that eventually convinces a person the need for buying it. The ultimate target here is sales. So both the sales and marketing tactics are very much interconnected.

Identifying the market potential and realizing the competition is the primary function of any company. All other strategies like Reduction of cost in manufacturing, Supply chain management, Advertisement and Market expansion tactics are secondary here.

(2) Finance and Accounting

Generating revenue is the main motive of any company. So this department takes care of all the financial requirements like Risk assessment, Capital investment appraisal, Asset management, Analyzing revenue and Tax procedures. Maintaining details of all the expenditure and income resources related to a company is being handled by its Finance and Accounts department. This is one of the sections that require well-experienced people to handle things effectively.

In usual scenarios strategical changes are not much required here unlike the Marketing and Sales division. But any fundamental issues that occur in any other department can seriously affect the workflow of a finance division, due to the changes that needed in managing funds.

(3) Human Resource

For any company, a dedicated and capable workforce is very essential. A Human Resources department fulfills this requirement by performing various selection procedures for applicants. It consists of an evaluation of the candidate's Personal, Educational and Professional background. The other functions of an HR department include Scheduling job training, Performance appraisal, Staff allocation and Remuneration management.

A healthy work culture begins with the policies of an HR department. So the HR division has to implement, adequate rules and regulations that promote a pleasant work environment. The Human Resource team and the Accounts department need to work together for the efficient utilization of the manpower resources.