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Business Functional Areas Functions Processes PDF

This document discusses business functional areas, business functions, and business processes. It identifies the main functional areas of companies as marketing and sales, supply chain management, accounting and finance, and human resources. Each functional area consists of narrower business functions like marketing, sales, purchasing, and accounting. Business processes are collections of activities that take inputs and create outputs of value to customers. The integration of business functions and sharing of data between functions leads to more efficient business processes and information flow.

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Shanju Amath
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155 views4 pages

Business Functional Areas Functions Processes PDF

This document discusses business functional areas, business functions, and business processes. It identifies the main functional areas of companies as marketing and sales, supply chain management, accounting and finance, and human resources. Each functional area consists of narrower business functions like marketing, sales, purchasing, and accounting. Business processes are collections of activities that take inputs and create outputs of value to customers. The integration of business functions and sharing of data between functions leads to more efficient business processes and information flow.

Uploaded by

Shanju Amath
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Business Functional Areas, Business

Functions, and Business Processes


By Susan L. Miertschin

Functional Areas of Operation


Many companies have four main functional
areas:

Marketing and Sales (M/S)


Supply Chain Management (SCM)
Accounting and Finance (A/F)
Human Resources (HR)

Functional Areas Have Business


Functions
Each main functional area
consists of a number of
narrower business functions
specific to the functional area
Historically, businesses have
organized themselves
according to business
functions

Marketing and Sales Business


Functional Area Business
Functions
Business functions that are part of the
Marketing and Sales business functional
area include marketing of a product,
sales forecasting, customer support,
advertising, taking sales orders, and
customer relationship management.

Supply Chain Management


Business Functional Area
Business Functions
Business functions that are part of the
Supply Chain Management business
functional area include purchasing and
receiving of goods and raw materials,
transportation and logistics, production
run scheduling, manufacturing of goods,
and plant maintenance.
maintenance

Finance and Accounting Business


Functional Area Business
Functions
Business functions that are part of the
Finance and Accounting business
functional area include financial
accounting, cost allocation and control,
planning and budgeting,, and cash-flow
management..

Human Resources Business


Functional Area Business
Functions
Business functions that are part of the
Human Resources business functional
area include recruiting and hiring,
training, payroll, government
compliance, and benefits.

Business Processes
A collection of activities that takes one or more
inputs and creates an output that is of value to the
customer
Customer may be a traditional external customer
who buys the product or service, or an internal
customer (a colleague in another department)
Customers perspective
does not care that business functions overlap in
processing their order
is unhappy when mistakes occur or delays are caused
by poor coordination of business functions

Integration of Business Functions


Sharing data efficiently and effectively within
and between business functions and functional
areas leads to more efficient business processes
Information generated by each function must
flow through the process across functions and
functional areas as needed

10

Integrated Information Systems


share data between functional
Each functional area often has its own unique
information system to support its business
processes
An Enterprise Resource Planning system is an
Integrated Information System
often consists of functional area modules

11

Business Functional Areas, Business


F
Functions,
ti
and
dB
Business
i
P
Processes
By Susan L. Miertschin

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