Ch. 2 Text Flashcards
What are business processes?
Refer to the manner in which work is organized, coordinated, and focused to produce a valuable product or service. The collection of activities required to produce a product or service.
The performance of a business firm depends on how well its business processes are designed and coordinated.
Many business processes are tied to a specific functional area.
What is the functional perspective of human resources?
Hiring employees
Evaluating employees’ job performance
Enrolling employees in benefit plans
What is the functional perspective of finance?
Paying creditors
Creating financial statements
Managing cash accounts
What is the functional perspective of marketing?
Identifying customers
Making customers aware of the product
Selling the product
What is the functional perspective of manufacturing?
Assembling the product
Checking for quality
Producing bills of material
Why are functional systems that operate independently become obsolete?
They cannot easily share information to support cross-functional business processes. Many have been replaced with large-scale cross-functional systems that integrate the activities of related business processes and organizational units.
What is an enterprise system?
Also known as enterprise resource planning (ERP) systems are used to integrate business processes in manufacturing and production, finance and accounting, sales and marketing, and human resources into a single software system.
What is a supply chain management system?
Used to help manage relationships with their suppliers.
Help suppliers, purchasing firms, distributors, and logistics companies share information about orders, production, inventory levels, and delivery of products and services so they can source, produce, and deliver goods and services efficiently.
Increase firm profitability by lowering the costs of moving and making products by enabling managers to make better decisions about how to organize and schedule sourcing, production, and distribution.
