This thesis analyzes the seven fundamental business functions of an organization, with particular emphasis on their distinct characteristics and the challenges organizations encounter in a dynamic environment. The theoretical segment of the thesis defines and elaborates on these functions, whereas the practical segment centers on analyzing the application of these functions within Valamar Riviera, a leading Croatian organization in the tourism industry. Studying Valamar Riviera facilitates an exploration of the interrelations between each function's tasks and their contributions to the organization's overall operations. Special attention is devoted to innovations and sustainable development as pivotal elements in Valamar Riviera's long-term success. The thesis provides concrete examples of how the organization integrates sustainable practices into its operations, thereby contributing to environmental protection and enhancing its reputation. Human resource management strategy stands out as a crucial aspect within Valamar’s business environment. The objective of the thesis is to examine how Valamar Riviera applies its business functions both within Croatia and beyond, as well as how it addresses the challenges posed by a competitive market and rapid changes in the tourism industry. The analysis reveals the efficiency of business functions in a specific business environment and identifies strategies and practices that contribute to the organization's successful operations. Through this analysis, the thesis offers a comprehensive insight into the key factors that enable Valamar Riviera to maintain its market-leading position and continuously improve its business processes.