Class 8: The Functions of Business Flashcards
Domains of management: People
Encompasses managing interpersonal relationships within organizations.
Domains of management: Money
Associated with Aristotle’s ideas about chrematistics.
Domains of management: Managing other organizations and resources
Encompasses ideas about managing relationships between organizations.
Value Chains
The sequence of activities whereby an organization: 1) acquires the resources it needs (i.e. key. inputs like people, money, and other resources)
2) Engages in day-to-day operations to use and add value to these resources (i.e. converts the input into products and services)
3) Utilizes its value-added outputs to further its interests (e.g. sells its products and services to customers)
Value Chains to Value Loops
Value loops have the traditional inputs, conversion processes, outputs, but they have environmental resources and processes (sociocultural, natural, political-legal, and economic/technological environments) and the arrow flow between all four of the domains instead of just in one line.
Human Resource Management (HRM)
How organizations find good people, train them, compensate them, promote them, and dismiss them.
Finance
Finance is about raising money (financing) and spending money (investing) and deciding on the best ways to accomplish these tasks. Every decision encountered in a business has financial implications and it is crucial for management students to have a strong knowledge of financial concepts and theories.
Accounting
Broadly concerned with the measurement of wealth and the financial impact of transactions. Good accounting results in good decision making.
Supply Chain Management (SCM)
Supply Chain Management focuses on inter-organizational logistics, and specifically on ensuring that organizations find optimal ways to acquire the supplies that they need from other organizations.
Operations Management
Operations management, which includes both production management and service operations, refers to directing and controlling the processes that convert an organization’s resources (inputs) into finished goods and services (outputs).
Marketing
Marketing is planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services. Marketing affects almost every aspect of daily life, and it is something you are exposed to all the time. From deciding how to package a product (and what the product should be) to getting the product to market, marketers perform a wide variety of tasks.
Fitting it all together (Value Loop)
Look at slide 22!
