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. Either of these things will result in a weak advertising campaign, attracting less customers to buy the car and therefore lead to a loss of profit for Toyota. Another consequence could also be damage to Toyota’s reputation due to incomplete information for customers.