BUS 237 Chapter Notes - Chapter 7: Financial Statement, Management System, Accounts Receivable

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 237
• Professor: Zorana Svedic

Document Summary

Businesses first determine the competitive strategy: price/differentiation industry wide/specific. Then create business processes to achieve strategies: steps to producing/selling output how responses are received. Making primary and support activities in organization more productive than competitors" value chain increases margin. Increase productivity from more effective and efficient business processes in organization. E. g. ) computed payroll, wrote pay checks, inventory tracking. Calculation systems functional systems integrated systems. Integrated systems / cross-functional / process-based systems : Facilitated work of one department or function. Functions added to calculation system programs to provide more value, supported whole department. Companies added features and capabilities to information systems. E. g. ) human resources expanded from payroll, financial reporting, operations with inventory. Inter-organizational systems: cross-functional systems used by two or more related companies e. g. ) company and its suppliers/customers. Functional systems were designed to work independently; however, inter- related in reality because e. g. ) purchasing influences inventory production. Decisions appropriate for a single business function is inefficient for entire business process.