Distinguish between business function and business process, Business Management

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QUESTION 1

Enterprise Resource Planning (ERP) programs are software used by companies to manage information in every area of the business. ERP programs help manage company-wide business processes using a common database and shared management reporting tools. ERP software supports the efficient operation of business processes by integrating activities throughout a business

(a) Distinguish between a business function and a business process. Provide an example to illustrate your point

(b) Why do managers today try to think in terms of business processes rather than business functions?

(c) Most companies have four main functional areas-

  • Marketing and Sales (M/S)
  • Supply Chain Management (SCM)
  • Accounting and Finance (A/F)
  • Human Resources (HR)

 

Each main functional area consists of a number of narrower business functions specific to the functional area

(i.) Assume you are the marketing manager of a new upcoming firm that sells Chocolate bars. What data do you require from both Accounting and Finance and Supply Chain Management to do your job properly?

(ii.) Assume you are the chief financial officer of the company that sells the Chocolate bars. You need detailed records to report your financial status to the government. What functional areas provide that information that would help you complete your report?

(iii.) Assume you are the Human Resource Manager of the company that sells the Chocolate bars. Your job is vital because your employees are the main asset to your firm. What information do you need from each functional area to ensure proper staffing of the production line?


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