Business Functions And Process Flashcards
(24 cards)
What is Enterprise Resource Planning (ERP)?
Core software used by companies to coordinate information in every area of business
What are the main functional areas of operation used in business?
- Marketing and Sales (M/S)
- Supply Chain Management (SCM)
- Accounting and Finance (A/F)
- Human Resources (HR)
Define a business process.
Collection of activities that takes some input and creates an output that is of value to the customer
What is a business function?
Activities specific to a functional area of operation
What is an integrated information system?
Systems in which functional areas share data
Why are integrated information systems essential?
They improve communication, workflow, and success of the company
What inputs do businesses take to create goods and services?
- Material
- People
- Equipment
What are the functions of Marketing and Sales?
- Developing products
- Determining pricing
- Promoting products to customers
- Taking customers’ orders
- Helping create a sales forecast
What are sales forecasts?
Analyses that attempt to predict the future sales of a product
What are the functions within Supply Chain Management?
- Making the coffee (manufacturing/production)
- Buying raw materials (purchasing)
- Production planning
What kind of data does Accounting and Finance record?
- Transactions (including sales)
- Raw material purchases
- Payroll
- Receipt of cash from customers
What is raw data?
Numbers collected from sales, manufacturing and other operations, without any manipulation, calculation, or arrangement for presentation
What are the functions of Human Resources?
- Recruit
- Train
- Evaluate
- Compensate employees
What information does Human Resources need from other departments?
- Personnel forecasts
- Skills data
What are the inputs for Marketing and Sales?
- Customer data
- Order data
- Sales trend data
- Per-unit cost
- Company travel expense policy
What are the outputs for Marketing and Sales?
- Sales strategies
- Product pricing
- Employment needs
What are the inputs for Supply Chain Management?
- Product sales data
- Production plans
- Inventory levels
- Layoff and recall company policy
What are the outputs for Supply Chain Management?
- Raw material orders
- Packaging orders
- Resource expenditure data
- Production and inventory reports
- Hiring information
What are the inputs for Accounting and Finance?
- Payments from customers
- Accounts receivable data
- Accounts payable data
- Sales data
- Production and inventory data
- Payroll and expense data
What are the outputs for Accounting and Finance?
- Payments to suppliers
- Financial reports
- Customer credit data
What is the significance of data sharing among functional areas?
Timeliness and accuracy of these data are critical to each area’s success and to the company’s ability to make a profit and generate future growth
What does ERP software allow functional areas to do?
Share a common database for accurate, real-time information
True or False: Each functional area operates independently without needing data from other areas.
False
Fill in the blank: The basic functional areas are _______.
[Marketing and Sales, Supply Chain Management, Accounting and Finance, Human Resources]
