Financial Accounting Function
The financial accounting function keeps a record of financial events. They keep account of all the money that has been paid to or by Marks & Spencer and also debtor and creditor transactions. They also take care of wages for employees and deductions such as national insurance and pension. They will also produce periodic records such as annual accounts and figures to discuss at meetings with directors.
The management accounting function leads the company in certain directions. These are based on the analysis of present figures and predictions for the future. The figures will be broken down in to information, in which the Marks and Spencer’s performance can be shown. As Marks and Spencer is a PLC, the company have to produce an annual report for shareholders, on how the business is doing. Production Marks and Spencer is a service industry, so they organise others resources to ensure that the product they are offering to the final customer is made to the best quality and value.
Production links to Objective 7- providing high quality products. Marks and Spencer provide contracts with other small companies to produce goods. They also keep a track and knowledge of the contractor’s values, standards and responsibility, to ensure that the products are made to the highest standards. The goods made by these small companies are then sent to large Marks and Spencer warehouses, from where they are delivered to the Marks and Spencer stores. If each of these is not done on time then this could mess create problems, if for example the delivery from the warehouse did not reach the store on time then the products wouldn’t be ready to be put on to the shelves, and this would lead to unhappy customers and so on.
The production department links to many other functional areas of the business, like the objectives: making a profit, increasing sales, surviving, providing services to the community, offering charitable non-profit services, developing staff skills and providing high quality products. The finance department has a link with the production department, the finance department have to ensure that the production is carried out within agreed costs. The relationship between both these departments must be strong, in order for Marks and Spencer to meet their profit objectives.
The marketing department is also linked with the production department because, when new products are created, marketing department have to be aware of this, also as the marketing department carry out the research then they will be able to inform the production department on what the customers actually want.A1- alternative approaches that might enable Marks and Spencer to better meet its objectives.
Introduce a reward card scheme where customers can earn points by buying products and receiving vouchers e.g. for every 500 points earned a ï¿½2.50 voucher will be given to the customer. (Objective 4) Marks and Spencer could be environmentally friendly by introducing recycled bags and packaging. (Objective 5) Expand the business to Africa and America to increase market share and profits. (Objective 8) Give money to more charities e.g. cancer research
Children in need Leukemia Research A2 – Evaluating the effects that the alternative approaches might have on the structure and functions of the business and on how it achieves its objectives. The above alternative approaches will make a big change to Marks and Spencer’s structure. The effects should be positive and Marks and Spencer should receive a positive impact from customers, staff, and environmental health department and staff at Marks and Spencer.
List of Resources Below is a list off all the resources that I have used to complete this report. Textbooks Advanced Business, Needham D, Dransfield R, Heinemann AVCE