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Functional Area 10 Mark Question - examples of Toyota and a small farm business.

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Introduction

Transfer-Encoding: chunked ´╗┐Functional Area 10 Mark Question (January 2010) Evaluate the consequences for a business you have studied if the functional areas do not operate efficiently. The functional areas of a business such as Toyota have to operate together in an efficient manner or there will be a variety of negative consequences. The production function of Toyota needs to work with the marketing function so that when the marketing function is designing an advertising campaign for a new car model they have all the relevant details. Without these details it will be harder to sell the car because customers will not be given a full picture of the new car model. Or the marketing function might include wrong information about the new car. ...read more.

Middle

The most important consequence to Toyota of the functional areas not operating together efficiently is the loss of customers. This is because it is the factor that will lead to the biggest loss of profit, which is the main reason why a business like Toyota exists. Functional Areal 10 Mark Question 2 (June 2011) Given Context Derek and John employ ten workers all year round on the farm. Between them the two partners, their wives and the ten workers ensure that the activities within each of the functional areas of the business are completed. Derek and John also employ seasonal workers as and when required. In addition, Freya, John?s wife, looks after the accounts. ...read more.

Conclusion

With there being a lot of different tasks on a farm this could have seriously negative effects on the business. Natasha runs the Farm Shop and so represents the Marketing Function. If she did not operate with Freya, the Finance Function, then she would not know how much money she had to spend on promoting products in the farm shop. If she overspends then this would take money away from other areas of the farm. This could negatively affect the efficiency of the farm therefore negatively affecting profits. If she under spends then customers might not get persuaded to buy products in the shop, meaning a loss in profit. Losing employees or having them de motivated is the main consequence of the functional areas at Gorse Hill Farm not operating together. This is because employees on a farm a crucial due to the amount of work that needs to be done. ...read more.

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