BusinessProcessesS10 - Sales/Collections Process I WCOB...

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U C T I O N L O G I S T I C S A C C O U N T I N G TOP MANAGEMENT I O N L O G I S T I C S A C C O U N T I N G TOP MANAGEMENT Take order Make product Ship Send bill Customer order Post in ISIS Advise students Register students Check prereqs Bill students Make schedule Capital Expenditures Process External Financing Sources Sales/Collections Process Financing Process Conversion Process Human Resources Process Purchasing Process Labor Finished Goods Cash Cash Cash Raw Materials Buildings and Equipment WCOB 1023 Business Foundations Business Processes Introduction to Business Processes Organizations create value by providing goods and services that customers are willing to pay for. Goods and services are created through the implementation of a series of business processes . Although the specific content of business processes differs from organization to organization, depending on the specific product or service that they create, there are many common business processes that you find in almost every organization, in one form or another. For example, every organization needs to raise capital, invest in equipment, hire employees, attract and satisfy customers, etc. This focus on business processes represents a fundamental departure from the traditional view of the organization. Traditionally, businesses were organized by functional departments , such as marketing, production, logistics, accounting, etc. A functional manager, who only had to focus on his or her functional area, managed each department. Functional managers did not have to worry about profits. The marketing manager, for example, just had to worry about maximizing sales, and the production manager just had to focus on making products with minimum costs. It was the job of top management to make sure that all departments worked together in order to generate profits. A functional organization is very efficient, but it does have its problems. Consider what happens when a customer places an order. The Marketing Department takes the order. The Marketing Department also sets price, product specifications, and delivery date that are agreeable to the customer. Marketing, however, is not responsible for completion of the order, and is no longer involved with the customer once the order has been taken. Marketing simply forwards the order to Production, who is responsible for meeting the specifications agreed upon between the customer and the Marketing Department. Next, delivery is handled by the Logistics Department, while Accounting takes care of billing and collections. In summary, multiple departments are involved in the fulfillment of the customer order, but no one department is responsible for the complete order. No one is responsible for making sure the customer is satisfied! Satisfactory completion of the customer order requires that all departments work together, and
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This note was uploaded on 03/16/2011 for the course WCOB 1023 taught by Professor Sandeepgoyal during the Spring '08 term at Arkansas.

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BusinessProcessesS10 - Sales/Collections Process I WCOB...

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