Chapter 2 Discussion Questions
List the four major functions of a business. What is a business process?
Develop a production division – an arrangement of people, machines, and business
processes that will produce the produce
Sales and marketing group – attract customers, sell the product, and keep track of
after-sales issues, such as warranties and maintenance.
Finance and accounting group – keep track of financial transactions, such as orders,
invoices, disbursements, and payroll, as well as seek out sources of credit and finance.
Focus on recruiting, hiring, training, and retraining employees.
Business process is the actual steps and tasks that describe how work is organized in a
business. A business process is a logically related set of activities that define how
specific business tasks are performed. Business processes also refer to the unique ways
in which work, information, and knowledge are coordinated in a specific organization.
List and describe the information systems serving the various levels of management in a
Transaction Processing System – systems that keep track of they elementary activities
and transactions of the organization, such as sales, receipts, cash deposits, payroll,
credit decisions, and the flow of materials in a factory.
Management Information Systems – provide middle managers with reports on the
organizations current performance. This information is used to monitor and control
the business and predict future performance.
Decision Support Systems – support non routine decision making for middle
management. They focus on problems that are unique and rapidly changing, for which
the procedure for arriving at a solution may not be fully predefined in advance.
Executive Support Systems – address non routine decisions requiring judgment,
evaluation, and insight because there is no agreed on procedure for arriving at a
What are enterprise applications and what purpose do they serve? List and describe the four
major enterprise applications.
Enterprise applications are systems that span functional areas, focus on executing