GMGT 1010 The Functions of Business

1.       What are the 6 key functional areas of business?

-            HRM

-            Finance

-            Accounting

-            Supply chain management

-            Operations management

-            Marketing

1.       What are the 3 domains of management?

-            People – managing interpersonal relationships within organizations

-            Money – associated with Aristotle’s ideas about chrematistics

-            Managing other organization and resources – managing relationships between organizations

1.       What are the 3 elements of a value chain?

-            Input (people/money)

-            Transformation – added value to resources (converts to services/products)

-            Output (sells products/services to customers)

 

1.       What are the 2 drawbacks of a value chain?

-            Ends of chain unconnected – managers don’t see outputs linked to inputs

-            Seen as straight line, fail to see how things are connected to each other

 

1.       What is a value loop? What is the new addition compared to the value chain? What is another difference?

-            Where outputs are connected to the future inputs

-            Environmental recourses and processes (where inputs come from and where outputs go to)

-            Loop moves in both directions

1.       What is human resource management (HRM)?

-            Gets the most out of people

1.       What are the main responsibilities of HRM?

-            How organizations find good people (recruitment)

-            Train/re-train them

-            Compensate them (pay, benefits, liking job, and other job-related rewards)

-            Promoting and dismissing employees when necessary

1.       What is Finance?

-            Financing money and investing money in the best way possible

-            How are you going to get people to invest (most impact) in organization?

1.       What are the 2 main ways a business can raise money?

-            Debt financing (borrowing money)

-            Equity financing (Selling shares)

 

1.       What determines which type of financing a business uses?

-            Short and long-term needs

1.       What do financial managers consider when investing money?

-            Risk and return

-            Diversification (spreading investments)

1.       What is active and passive income? (relates to financing money)

-            Passive income: not doing anything and getting money from investments

-            Active income: working to get money

1.       What is accounting?

-            Measurement of wealth and the financial impact of transactions

1.       How does good accounting help a business? (2)

-            Better decision making

-            Helps managers decide what actions to take when sales are low

1.       How do managers use sales data? How will AI effect?

-            To make daily management decisions

-            Help make smarter, data driven decisions

1.       What are the 4 basic assumptions of GAAP (Generally Accepted Accounting
Principles)? Explain each briefly.

-            Equity – separate from owners

-            Unit of measure – performance measured in money

-            Periodic reporting – financial info reported in regular intervals

-            Going concern – keep running in future instead of shutting down (if can afford)

1.       What is the traditional view of Supply chain management?

-            Moving goods between organizations and finding best ways to buy supplies from other companies

1.       What are the main goals of strategic purchasing?

-            Suppliers that offer good quality, on time delivery, low prices

1.       Why do companies build long-tern relationships with suppliers?

-            To build trust so they can share knowledge for new products, invest in better performance, transportations stable and low-cost

1.       What is operations management?

-            Involves directing and controlling processes that convert resources (inputs) into finished products and services (outputs)

1.       What are the 4 key dimensions to operations management?

-            Quaility, Dependability (delivering products and services), Speed/Flexibility (customer needs), Cost of creating

1.       What are the 4 P’s of Marketing?

-            Product, Price, Place, Promotion