Which of the following represents the relationship between functional areas in a business?

Inhaltsverzeichnis Show

What are the functional areas of a business?
What are the 3 functional area of a business organization?
How are the functional areas of business interrelated?
What are the four functional areas of a business organization?

Management Information Systems: Managing the Digital Firm, 16e, Global Edition

(Laudon)

Chapter 2 Global E-business and Collaboration

1) Producing a bill of materials is a business process in which of the following functional areas?

A) Finance and accounting

B) Human resources

C) Manufacturing and production

D) Research and development

E) Sales and marketing

2) Which of the following is an example of a cross-functional business process?

A) Identifying customers

B) Shipping a product

C) Fulfilling a customer order

D) Hiring employees

E) Paying creditors

3) Order fulfillment involves all of the following business processes except:

A) checking the customer's credit.

B) assembling the product.

C) submitting the order.

D) making customers aware of the product.

E) shipping the product.

4) The ________ function is responsible for making sure customers are aware of the company's

products.

A) finance and accounting

B) human resources

C) manufacturing and production

D) sales and marketing

E) distribution and logistics

5) According to the chapter case, Sanofi Pasteur is using Microsoft Yammer for all of the

following reasons except:

A) give employees more opportunities to innovate.

B) increase product innovations from lower down in the organization.

C) simplify business processes

D) strengthen management controls over employees

E) set up activist groups for change

6) Identifying customers is a business process handled by the marketing function.

Answer: TRUE

7) One example of a business process is shipping a product to a customer.

Answer: TRUE

8) What is the connection between organizations, information systems, and business processes?

We can distinguish between several types of Customer Relationships, which may co-exist in a company’s relationship with a particular Customer Segment.

Transactional

This means there is no real relationship between the company and the customer. The company interacts with the customer on a transactional basis. A kiosk at an airport, for example, usually doesn’t really establish a relationship with its customers.

Long-term

This means a long-term and maybe even deep relationship is established between the company and the customer. The company interacts with the customer on a recurring basis.

Personal assistance

This relationship is based on human interaction. The customer can communicate with a real customer representative to get help during the sales process or after the purchase is complete. This may happen onsite at the point of sale, through call centers, by e-mail, or through other means.

Dedicated personal assistance

This relationship involves dedicating a customer representative specifically to an individual client. It represents the deepest and most intimate type of relationship and normally develops over a long period of time. In private banking services, for example, dedicated bankers serve high net worth individuals. Similar relationships can be found in other businesses in the form of key account managers who maintain personal relationships with important customers.

Self-service

In this type of relationship, a company maintains no direct relationship with customers. It provides all the necessary means for customers to help themselves.

Automated services

This type of relationship mixes a more sophisticated form of customer self-service with automated processes. For example, personal online profiles give customers access to customized services. Automated services can recognize individual customers and their characteristics, and offer information related to orders or transactions. At their best, automated services can stimulate a personal relationship (e.g. offering book or movie recommendations).

Communities

Increasingly, companies are utilizing user communities to become more involved with customers/prospects and to facilitate connections between community members. Many companies maintain online communities that allow users to exchange knowledge and solve each other’s problems. Communities can also help companies better understand their customers. Pharmaceutical giant GlaxoSmithKline launched a private online community when it introduced alli, a new prescription-free weight-loss product. GlaxoSmithKline wanted to increase its understanding of the challenges faced by overweight adults, and thereby learn to better manage customer expectations.

Co-creation

More companies are going beyond the traditional customer-vendor relationship to co-create value with customers. Amazon.com invites customers to write reviews and thus create value for other book lovers. Some companies engage customers to assist with the design of new and innovative products. Others, such as YouTube.com, solicit customers to create content for public consumption.

Switching costs

Switching costs indicate how easy or how difficult it is for a customer to switch to a different alternative. For example, when a customer of a data storage provider stores all his data in a proprietary format it might be difficult for him to switch to an alternative provider.

What are the functional areas of a business?

Generally, the six functional areas of business management involve strategy, marketing, finance, human resources, technology and equipment, and operations.

What are the 3 functional area of a business organization?

Every business is managed through three major functions: finance, marketing, and operations management. Figure 1-1 illustrates this by showing that the vice presidents of each of these functions report directly to the president or CEO of the company.

How are the functional areas of business interrelated?

Each functional area must work together for the organization to achieve its goals. A functional area is responsible for performing specific tasks needed by the organization. The output of a task performed by one function becomes the input for another function.