Strategic Management

INTERDEPENDENCE OF FUNCTION:-

Public relations are important to all the primary and secondary functions. Public attitude affects the success of attempts to sell stock or to borrow money. The public’s attitude also affects the company’s ability to sell its product and to obtain competent employees to produce the goods and services that the company exits to provide.

Public relations activities illustrate some of the interrelationships among functions within businesses. We may divide a company into smaller units so that each unit is within the human capacity to understand and to supervise, but the parts still are only parts. They must work together if the total organization is to function properly.

The three major functions within a business are interdependent. Having the financial resources and the ability to produce a product are of little value if there is no market for the product. Having the finance resources and a market for a product is of little value if one cannot provide the product. The ability to produce a product and a market for the product are not sufficient if one does not have the necessary capital to employ personnel, buy raw material, and put the other capabilities into action. All of the functions in an organization both contribute to the whole and depend on the remainder of the organization. We consider each function separately so that we may study a manageable unit, but it is important to keep in mind that the other functions are at the same time necessary to, and dependent on the function being studied. Figure 9.1 illustrates the interrelatedness of some functions with business.

TODAY’S BOARDER VIEW OF THE OPERATIONS FUNCTION:-

The operations function is sometimes called the production function, or the production and operations function. In the past, the term “production” was considered by some persons to connote only the manufacture of tangible items. Later the term “operations” was added so substituted to include references to...