functional interdependence
What functional interdependence means in Business A-Level, as defined for AQA.
Definitions of functional interdependence
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Reference: AQA
The interrelationship between human resource decisions and other functions, where a workforce decision affects other functions and those functions also constrain human resources.
The interrelationship between financial decisions and other functions, where every functional plan is a spending plan and finance is where they meet and compete.
Linking the operations decision to another function, so a fall in unit cost is traced through to the price marketing can charge or the cash finance has to find.
Checking a marketing proposal against another function, such as whether finance, operations and human resources can deliver what marketing promises.
The interrelated nature of business activities, where a decision taken in one function affects other functions and how they affect competitiveness.
The interrelationship between operational decisions and other functions, where no decision taken in operations stops at the factory gate.
Topics that use functional interdependence
- Financial management (AQA A-Level)
- Human resource management (AQA A-Level)
- Marketing management (AQA A-Level)
- Operational management (AQA A-Level)
- Subject content (AQA A-Level)
Related terms
- cost leadership
- differentiation
- application to a named business
- capacity utilisation
- labour productivity
- labour turnover
- Porter's five forces
- stakeholder conflict
Using functional interdependence in the exam
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