BUAW > Chapter 5 > Flashcards

Chapter 5 Flashcards

(58 cards)

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1
Q

What functions are there of the business?

A

Operations
Sales and marketing
HR
IT
Finance

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2
Q

What are the roles of the finance function in organisations?

A

Enable
Shapes
Narrates

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3
Q

How does a finance function and organisations enable?

A

Enables an organisation to create and preserve value through planning forecasting and resource allocation

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4
Q

How does a finance function in organisations shape?

A

Shapes how an organisation creates and preserves value through performance management and control

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5
Q

How does a finance function in organisations narrate?

A

Narrates how an organisation creates and preserves value through financial corporate reporting

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6
Q

What is the definition of operations?

A

Those activities concerned with the acquisition of raw material, their conversion into finish products and the supply that finish product to the customer

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7
Q

What is operations management?

A

Operations management is the activities involved in designing, producing and delivering products and services that satisfy the customers requirements

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8
Q

What specific parts of the organisations operation interact with the finance function?

A

Purchasing production and service provision

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9
Q

What is purchasing responsible for?

A

Purchasing and following up orders 

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10
Q

Purchasing coordinates with the finance function as follows:

A

Establishing credit term, price, payment, data capture, budgeting

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11
Q

What is establishing credit terms?

A

Financial work together with purchasing to negotiate credit terms with suppliers

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12
Q

What is prices regarding suppliers

A

Financial advice purchasing on the best price to pay suppliers

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13
Q

What is payment?

A

Approved by purchasing a made by finance

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14
Q

What is data capture?

A

Order details are input by purchasing and shared with finance

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15
Q

What is budgeting for purchasing

A

Finance will consult with purchasing on likely budget costs

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16
Q

What is a core part of the operations function?

A

The production of goods

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17
Q

How does the production of good liaise with the finance function?

A

costing, budgeting, cost v quality, production process, inventory 

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18
Q

What is costing?

A

Finance will calculate production cost using information provided by operations

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19
Q

What is budgeting for no production of goods

A

Finance an operation will work together to determine the budgeted cost of production

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20
Q

What is cost V quality?

A

Finance and operations will work together to establish the optimum balance between cost and quality

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21
Q

What is production process?

A

Finance can assist in identifying efficiencies in the production process and suggest improvements

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22
Q

What is inventory?

A

Use various techniques to advise on stock levels and production required to meet demand

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23
Q

What areas will the finance function work with the sales and marketing function?

A

Budgeting, advertising, pricing, market share, key performance indicators

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24
Q

What is budgeting? For sales

Study These Flashcards
A

Finance will discuss the likely sales volume with sales and marketing in order to produce the sales budget

25
What is advertising?
Finance will help set the budget and monitor the benefit generated
26
What is pricing?
Finance would have an input into setting the optimum price
27
What is market share?
Finance can provide sales volumes information and help to determine market share
28
What is key performance indicators?
Finance will help to establish and monitor the KPIs for sales and marketing
29
How does the finance function interact with sales and marketing?
Finance and sales and marketing should interact to achieve organisational goals and their own function goals There may be some antagonism in between the two function of issues such as pricing and cost control The modern approach is for the two functions to collaborate working as business partners and utilising each other specialisms Technologies is assisting this collaboration
30
What does cross the functional collaboration show?
An understanding of how citizens can influence decision-making through the Democratic process
31
What’s one area where the business partnering may enhance performance?
 the product/service development
32
What is core to achieving or maintaining competitive advantage in the market?
Given the rapid change in nature of the modern consumers needs effective product/service development is called
33
With a sharp eye for the economic upside the finance function will
Work collaboratively with sales marketing to evaluate new product/service lines
34
What is the possible KPI for overall sales and marketing activity?
Growth in sales volume Market share Gross profit Customer retention rate Cost of customer acquisition Marketing spend per customer Customer lifetime value
35
What is the possible KPI for promotion?
Promotion cost Awareness levels Website traffic to conversion % Social media reach Email marketing performance Sales teams response times
36
What is product/service in relation to KPI?
Product development times/cost Product lifestyle costs Re-purchase rates Brand value Warranty claims
37
What is pricing in relation to KPI?
Price relative to industry average Price elasticity of demand
38
What is place in relation to KPI?
Transport costs and storage costs
39
How do finance see hr
Traditionally, finance feed people as a cost, where is HR them as an asset The modern approach is to view people as one of the greatest assets of the organisation and the HR and financial should work more closer with the people as assets as their focus
40
What responsibilities does HR and finance have? 
Overlapping responsibilities, for example, considering the cost and benefits of different HR policies
41
Technology is free both what?
Both functions from day-to-day duties and has led to an increased role in strategy direction and enabled the functions to work in a more joined up way 
42
What is information systems?
Referred to the provision and management of information to support the running of an organisation
43
What is information technology?
Is the supporting equipment hardware that provides the infrastructure to run the information systems?
44
The IT function is responsible for
Planning evaluating installing operating and maintaining the hardware software networks and data centres required by the organisation
45
Why do organisations need information systems?
To capture generate the information that managers need for planning control and decision-making
46
IT has become what?
A strategic weapon which money organisations are using to improve their competitive position
47
How do Finace view IT
The modern approach is to view ideas one of the greatest assets of the organisation and that finance night should work more closely 
48
How should It and finance work together?
Smarter investment in IT Improvements and information security and compliance Improve data analytics
49
How does finance help manager IT?
Identify appropriate KPIs Assemble KPI data information Analyse this for insight Give advise to the IT function based on this insight Apply what has been learnt to impact the objectives of the IT function and the organisation as a whole
50
What are the possible KPIs for operational activities?
Ticket response rate to IT issues sent to IT support Resolution rates System/technology downtime Customer feedback/experience
51
What is the possible KPI for transformational activities?
Cost of new technology Time save using new technology It spend per employee IT utilisation Security adherence/breaches
52
What is the possible KPI for strategic activities?
New improved business opportunities using technology Revenue generated by using new technology Technology leading to competitive advantage IT function as a leader in the marketplace
53
What is the supply chain?
Consist of a network of organisations. Together these organisations provide and process the necessary raw materials first into the work in progress and then need to finish goods for sale and distribution to the end customer
54
What is supply chain management?
Involves the coordination of activities from the suppliers of raw materials at one end of the supply chain to the customer at the other end
55
How is the collaborative relationship between the CFO and the leader of the supply chain advantageous?
For organisational growth and competitive advantage
56
Why has the role of supply chain leader become more prominent in recent years?
As the focus of SCM has moved away from the cost of reductions to creating a strategy that is aligned to the broader goal of the organisation
57
What is the result of the finance function having a unique and view of the organisation?
There are a number of opportunities for finance to enhance performance through business partnering with the supply chain
58
What is an example of opportunities for finance to enhance performance through business partnering with the supply chain
KPI and performance evaluation Stronger alignment with overall strategy Data analysis to support decisions Risk awareness
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