Answer Sheet MGT613

Student Id: mc080201721

Name: Sheraz Hanif

Question 1

Describe the importance of each department to the other?

Marketing concept holds that achieving organizational goals depends on knowing the
needs and wants of target markets and delivering the desired satisfaction, however
Finance is the science of funds management and operation involves the sequential
execution of processes to get the end product

Importance of Departments

Indeed marketing, finance and operations adopts a multidisciplinary view by integrating

the three prong perspectives with reference to product development. The conceptual
framework builds on the resource-based view of the firm and organizational information-
processing theory to characterize relationships among organizational process factors,
product development capabilities, critical uncertainties, financial loads, operational and
market performance in production process. A multi-sectional approach for the entire
production process and lifecycle is analyzed via a three-stage hierarchical moderated
approach.

 the company’s production process is associated with achievement of operational

outcome targets for product quality, the capital involved and unit cost, and time-
to-market rate

 the achievement of operational outcomes aids the achievement of market which is

proportionate to finance outcomes,

 In turn suggesting that development capabilities are indeed valuable firm

resources; and these relationships are robust under financial fluctuations,
conditions of technological, market, and environmental uncertainty.

These three heads provides practical insight into how production process can be better
managed for operational and market success with least finances.

Question 2
Describe why it in necessary for an Operations Manager to have the
knowledge of Marketing and finance

Operations manager is a person of business concerned with the production of goods and
services, and involves the responsibility of ensuring that business operation are efficient
in terms of using as little resource as needed, and effective in terms of meeting customer
requirements. He is concerned with managing the process that converts inputs (in the
forms of materials, labour and energy) into outputs (in the form of goods and services).
More generally, Operations Managers aims to increase the content of value-added
activities in any given process. Fundamentally, these value-adding creative activities
should be aligned with the finance builds, market opportunity for optimal enterprise
performance. This OM appointment is concerned with the managing and directing the
physical and/or technical functions of a firm or organization, particularly those relating to
development, production, and manufacturing. Operation Manager’s area of jurisdiction
typically include instruction in principles of general management, manufacturing and
production systems, plant management, equipment maintenance management, production
control, industrial labor relations and skilled trades supervision, strategic manufacturing
policy, systems analysis, productivity analysis and cost control, and materials planning.
Operation manager is a very lucrative position with regards to running the product
business of any company he always remain the centre of attraction in order to achieve
success on execution of the vision planning, and organizing the product moreover he is
responsible for the effective controlling of inventory. It well said that money makes the
world go round so the operation manager’s every product development is directly
dependent on the availability of capital moreover in order to expect sound cash inflows
he shall posses the finance knowledge, because a fair knowledge of financial matters will
only make him think more deeper with reference to the suitability of the project and the
availability of funds Moreover, before starting the process he shall do an analysis of his
under taking product development project, its chances of success in market, a fair
understanding of marketing process will lead him to ordeal of comparative ratio in
becoming successful.One of the hot buttons in enterprise performance management
(EPM) is operational marketing and financial integration. In many commercial
organizations, operational plans, marketing structures and financial results are not
aligned very well, and in most cases, all have their own set of performance indicators.
Managers need the ability to see the financial consequences of their operational plans and
optimizations. Methodologies such as Economic Value Added (EVA)and performance
indicators such as Return on Capital Employed are designed to help managers understand
that financial resources are limited and that capital should be deployed where the return is
highest. Also, since financial results are the bottom line for every single business function
and domain, managers can use them as benchmarks to compare results from various parts
of the organization. Ultimately, finance is the language of business and these cross-
domain optimizations can be expressed in terms of lower cost and additional revenue.
From a top-down perspective, the better understanding of operational manager in subjects
of marketing and financial results in following advantages:
 Alignment provides senior management with increased insight and control

 Alignment gives financial managers higher predictability of financial results

 Increased insight, control, and predictability allow the organization to be

transparent and to comply with regulations with confidence of easy access to
markets