How do the main functional areas of a business interact and contribute to its effective management?

Essay by debbieclarke100University, Bachelor'sC+, November 2002

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'How do the main functional areas of a business interact and contribute to its effective management?'

The main functional areas of a business are marketing, human resource, finance, information systems and production. All these interact with each other in different ways but all contribute to effective management. Management would not be completely effective if one of the above areas are missing. They are all needed in different ways to make sure that the business reaches objectives, achieves effectiveness and efficiency and while doing this trying to get a balance in which they can satisfy different stakeholders.

One of the most important functional areas of a business is marketing. Marketing provides the organization with information, which allows the organization to make decisions on the demands of the consumers, changes in the market as well as any strategies of competitors. This contributes to effective management because it allows the business to make sure that they provide the right product or service to consumers.

This is very important for management because if the business does get this wrong then the survival of the business is under threat. To make sure that the business provides the right good or service, the marketing manager has to gather all the relevant information and distribute it to other areas in a way that will benefit the organization as a whole. Information can be used to help management plan their objectives and strategy's, which can be very effective for the business.

Marketing interacts with functional areas through the planning process. Businesses need to plan for the future and the marketing plan is part of this. The marketing plan shows the current situation of the business and where it wants to be in the future. This helps set the objectives and plan how these objectives will be achieved. It...