Chapter 2, Problem 1RQ

Program Plan Intro

Information Systems:

• An information system is a system which provides the necessary information to an organization to achieve the goals.
• It monitors the transactions details, provides the required information to decision makers, and provides necessary documents to the customers.
• The main components in the information system are people, data, procedures, hardware, and software.
• The main function of information system is accept and process the input data, and then stores the retrieved information and distributes it across the organization.

Explanation of Solution

Definition of business and its functions:

• Business is a method or organization in which products and services are produced for profit or benefit.
• Business includes major functions like Finance, Accounting, Human Resources, Manufacturing, Production and Sales and Marketing.

Explanation of Solution

Business process and its role in organization:

• The business process is the process of identifying and fulfills the requirement of the customer of the organization.
  • Business process begins with the customers need and ends with its fulfillment.
  • The activities need to complete the fulfillment are a chain task that are Engineering, Manufacturing, Marketing, Sales, Customer service within the organizations information flow.
• Role of business in organization
  • In manufacturing and production, quality, design, price and many such related to the product are checked.
  • In finance and accounting, statements of finance, accounts, credits and debits related to management are checked.
  • Human resources are used for employment and its development.
  • In sales and marketing, customer requirements, sales of the product and many others are involved.

Explanation of Solution

Different levels in business firm:

• Business firm includes three different levels depending on the work.
  • In operational management, business activities are monitored every day. The data includes the number of hours worked by an employee on a particular day.
  • In middle management, the work done in assigned by senior management. They depend on the functional area and department of the firm.
  • Senior management includes financial status of the firm and strategic decisions related to products and services.

Explanation of Solution

Importance of environment in business:

• It should have the knowledge of new technology and its effect on environment.
• A firm checks the changes in the environment which helps in maintain the business.
• It should always respond to political factors.
• It depends on environment in terms of capital, labor, products, services, customer, seller, technology, stability, legal systems, education, resources and many others.