EBK ESSENTIALS OF MIS
EBK ESSENTIALS OF MIS
12th Edition
ISBN: 8220101459305
Author: LAUDON
Publisher: PEARSON
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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.

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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.

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