1.4 Business Analytics Across the Different Business Functions Flashcards
What is the general purpose of business analytics?
Business analytics involves using data to acquire knowledge, draw conclusions, and address various business questions.
How does business analytics for marketing differ from analytics in accounting, finance, and operations?
Business analytics in marketing focuses on measuring and improving marketing performance, particularly by providing insights into customer preferences and trends.
In contrast, analytics in accounting, finance, and operations serve different functions within those respective business areas.
What key aspects does marketing analytics typically emphasize?
Marketing analytics often emphasizes providing insights into customer preferences, product offerings, promotional strategies, and pricing decisions
What is the scope of finance in business management?
What is the scope of finance in business management?
A33: Finance involves managing money through various activities such as investing, borrowing, lending, budgeting, saving, and forecasting.
How does financial analytics leverage business analytics?
Financial analytics uses business analytics to measure, evaluate, and improve a company’s financial performance.
It also assesses the potential risks and expected performance of future investments.
What are some examples of financial decisions that financial analytics helps companies make?
Financial analytics assists in making decisions about future investments, such as whether to acquire new equipment, based on risk assessment and expected performance.
It also helps in deciding whether to lease or buy assets and how to finance the company’s operations, including the use of debt or other financing methods.
What does the term “operations” encompass in the context of business?
Operations encompass all the activities required to run a company and generate income, including aspects like supply chain management, human resources, IT operations, sourcing, manufacturing, distribution, and logistics.
How does operations analytics utilize business analytics?
Operations analytics uses business analytics to measure and enhance the efficiency and effectiveness of a company’s operations.
It involves extensive data analysis to ensure that products are available in the right place at the right time.
What is the primary role of accounting in business?
Accounting measures and records financial transactions generated by finance, marketing, and operations activities.
It also communicates the outcomes of these transactions through financial performance reporting.
How does accounting analytics utilize business analytics?
Accounting analytics employs business analytics to evaluate financial performance and address accounting questions related to financial accounting, managerial accounting, auditing, and taxation.
Can you provide an example of how business analytics are used in accounting, as mentioned in the text?
In auditing, business analytics are employed to detect potential fraud within a company.
For instance, KPMG, one of the world’s largest accounting firms, uses accounting analytics to evaluate the companies it audits, searching for errors and signs of fraud
What role does accounting analytics play in tax planning?
Accounting analytics assists in tax planning by helping companies evaluate potential tax deductions to minimize their future tax liabilities.
