Q7-2 What Are Examples of Common Business Processes?

Question 1

What is a value chain in business?

Answer 1

A value chain is a series of value-adding activities within an organization, divided into primary activities (e.g., inbound logistics, operations) and** support activities** (e.g., human resources, technology development).

Question 2

What are the five primary activities in a value chain?

Answer 2

Inbound logistics
Operations
Outbound logistics
Sales and marketing
Customer service

Question 3

What are the support activities in a value chain?

Answer 3

Human resources
Technology development
Infrastructure

Question 4

What is the role of inbound logistics in the value chain?

Answer 4

Inbound logistics involve receiving, storing, and disseminating inputs to products.

Question 5

What is the role of operations in the value chain?

Answer 5

Operations transform inputs into final products.

Question 6

What is the role of outbound logistics in the value chain?

Answer 6

Outbound logistics involve collecting, storing, and physically distributing products to buyers.

Question 7

What is the role of sales and marketing in the value chain?

Answer 7

Sales and marketing involve inducing buyers to purchase products and providing means for them to do so.

Question 8

What is the role of customer service in the value chain?

Answer 8

Customer service assists customers’ use of products and helps maintain and enhance the product’s value.

Question 9

What are examples of operational processes in value chain activities?

Answer 9

Inbound logistics: Procurement
Operations: Assembling products
Outbound logistics: Sales
Sales and marketing: Mail promotion
Service: Tracking orders

Question 10

What are examples of managerial processes in value chain activities?

Answer 10

Inbound logistics: Manage inventory

Operations: Schedule maintenance

Outbound logistics: Award refunds

Sales and marketing: Evaluate promotional discounts

Service: Evaluate complaint patterns

Question 11

What are examples of strategic processes in value chain activities?

Answer 11

Inbound logistics: Evaluate potential suppliers

Operations: Open new restaurant

Outbound logistics: Determine payment policy

Sales and marketing: Launch a new product

Service: Evaluate outsourcing options

Question 12

What are inbound logistics processes?

Answer 12

Inbound logistics processes involve** receiving, storing, and disseminating** product inputs.

Examples include procurement, inventory management, and supplier evaluation.

Question 13

What is procurement in the context of inbound logistics?

Answer 13

Procurement is an operational process that acquires goods and services, such as ordering ingredients and paying for them.

Question 14

What is the role of inventory management in inbound logistics?

Answer 14

Inventory management is a managerial process that uses past data to compute stock levels, reorder levels, and reorder quantities according to inventory policies.

Question 15

What are operations processes?

Answer 15

Operations processes transform inputs into outputs.

These include scheduling the equipment, people, and facilities necessary to build or assemble products or services, such as assembling and baking pizzas.

Question 16

What is an example of an operations process in management?

Answer 16

An example of a managerial operations process is scheduling maintenance for equipment like ovens.

Question 17

What are outbound logistics processes?

Answer 17

Outbound logistics processes involve collecting, storing, and distributing products to buyers.

They are crucial for managing the movement of finished goods inventory.

Question 18

What is an example of an operational outbound logistics process?

Answer 18

An example is the Sales process, which records orders, ships products, and bills customers.

Question 19

What are sales and marketing processes?

Answer 19

Sales and marketing processes provide the means and incentives for customers to purchase a product or service, with the primary objective of transforming prospects into customers.

Question 20

What is an operational sales and marketing process?

Answer 20

An operational process in sales and marketing is Promotion, such as mailing promotions to potential customers.

Question 21

What are service processes?

Answer 21

Service processes provide after-sales support to enhance or maintain the value of a product.

Examples include tracking orders, customer support, and support training.

Question 22

What is an operational service process?

Answer 22

An operational service process involves tracking customer orders and providing customer support.

Question 23

What is an example of a managerial service process?

Answer 23

An example is evaluating customer complaints to identify patterns and improve service.

Question 24

What are human resources processes?

Answer 24

Human resources processes **assess employee motivations and skills, create job positions, investigate employee complaints, and staff, train, and evaluate personnel. **

These processes can range from recruiting to determining organizational structure.

Question 25

What is an operational human resources process?

Answer 25

An operational HR process includes recruiting, compensating, and assessing employee performance.

Question 26

What is an example of a managerial human resources process?

Answer 26

A managerial HR process involves workforce development and planning for future needs, such as training and employee development.

Question 27

What is an example of a strategic human resources process?

Answer 27

A strategic HR process determines pay scales, authorizes types of incentives, and decides organizational structure.

Question 28

What are technology development processes?

Answer 28

Technology development processes involve designing, developing, and testing technology that supports primary business activities.

Question 29

What is an operational technology development process?

Answer 29

An operational technology process includes testing new software to ensure it can handle large inputs, such as tens of thousands of keystrokes.

Question 30

What is an example of a strategic technology development process?

Answer 30

A strategic process in technology development involves deciding whether to purchase or develop a particular technology for the company.

Question 31

What is an example of a managerial technology development process?

Answer 31

A managerial technology process includes estimating the time required for each step of a software development process.

Question 32

What are infrastructure processes?

Answer 32

Infrastructure processes are essential supporting processes that enable day-to-day operations, including accounting, administration, quality assurance, and legal and financial processes.

Question 33

What is an operational infrastructure process?

Answer 33

An example of an operational infrastructure process is executing quality assurance evaluations as a product moves through a production line.

Question 34

What is a managerial infrastructure process?

Answer 34

An example of a managerial infrastructure process is the production of financial statements.

Question 35

What is a strategic infrastructure process?

Answer 35

A strategic infrastructure process involves determining whether to obtain a patent for a new product.

Question 36

What are some insights for applying process characteristics to business processes?

Answer 36

Ask good questions about objectives.

Standardize structured processes and keep dynamic processes fluid.

Don’t confuse process and Information Systems (IS).

Ensure processes work together.
Continually improve your own processes.

Question 37

Why is it important to ask good questions about objectives in a process?

Answer 37

Good questions about objectives help clarify the desired outcomes and guide decisions, such as whether a process should prioritize speed, promotion, or safety.

Question 38

Why is it important not to confuse a process with an Information System (IS)?

Answer 38

A process and IS are distinct; while a process may need IS support, the process itself is not the IS.

This distinction helps in deciding if an existing IS can support a new process or if a new IS is needed.

Question 39

How should structured and dynamic processes be handled differently?

Answer 39

Structured processes should be standardized (e.g., making pizzas), while dynamic processes should remain flexible (e.g., dealing with unhappy customers).

Question 40

How can ensuring processes work together improve business operations?

Answer 40

Ensuring processes work together helps maintain efficiency and consistency, such as integrating a new promotional process with the sales process to track customer data effectively.

Question 41

Why is it important to continually improve your own processes?

Answer 41

Continual improvement helps you stay adaptable and efficient, whether through experimenting with new methods or incorporating new technology, such as using mobile apps for customer payment.