Examples Q.5 Define an organization & an extended organization? Answer: - Organization definition: - An organization is an individual or group of people that collaborate to achieve certain commercial goals. An organization is an entity comprising multiple people, such as an institution or an association, that has a collective goal and is linked to an external environment A social unit of people that is structured and managed to meet a need or to pursue collective goals. All organizations have a management structure that determines relationships between the different activities and the members, and subdivides and assigns roles, responsibilities, and authority to carry out different tasks. Organizations are open systems--they affect and are affected by their environment. Organizational structures usually have a leader and multiple layers of subordinates. In a functional organization, occupations are grouped together. In a divisional structure, each business unit conducts its own activities, such as sales, marketing and training. Most organizations are made up of departments such as R&D, marketing, procurement, engineering, planning, finance, sales, service, manufacturing, and distribution among others Organizations usually consider their employees to be one of the most important part of the organizations. Most successful organizations have found that it is crucial to involve their customers in the organization. They need constant input from their customers in order to identify their requirement and develop better and more innovation ways to meet those requirements. Example: - is the world's largest restaurant chain run by McDonald's “McDonald’s”, McDonald's operating from 119 countries across approximately 36,615 outlets with 1.5 Corporation. McDonald’s million employees. An extended organization definition: - An extended organization is a loosely coupled, self-organizing network of firms that combine their economic output to provide products and services offerings to the market. Firms in the extended enterprise may operate independently, for example, through market mechanisms, or cooperatively through agreements and contracts. They provide value added service or product to the OEM. Extended organization is the concept that a company does not operate in isolation because its success is dependent upon a network of partner relationships. The concept of extended organization was coined in 1990 at the Chrysler Corporation to explain the necessity for a collaborative relationship between supply chain members and focus attention on the competitive advantages the company felt could be gained when suppliers become partners.
Examples Q.5 Define an organization & an extended organization? Answer: - Organization definition: - An organization is an individual or group of people that collaborate to achieve certain commercial goals. An organization is an entity comprising multiple people, such as an institution or an association, that has a collective goal and is linked to an external environment A social unit of people that is structured and managed to meet a need or to pursue collective goals. All organizations have a management structure that determines relationships between the different activities and the members, and subdivides and assigns roles, responsibilities, and authority to carry out different tasks. Organizations are open systems--they affect and are affected by their environment. Organizational structures usually have a leader and multiple layers of subordinates. In a functional organization, occupations are grouped together. In a divisional structure, each business unit conducts its own activities, such as sales, marketing and training. Most organizations are made up of departments such as R&D, marketing, procurement, engineering, planning, finance, sales, service, manufacturing, and distribution among others Organizations usually consider their employees to be one of the most important part of the organizations. Most successful organizations have found that it is crucial to involve their customers in the organization. They need constant input from their customers in order to identify their requirement and develop better and more innovation ways to meet those requirements. Example: - “McDonald’s”, McDonald's is the world's largest restaurant chain run by McDonald's Corporation. McDonald’s operating from 119 countries across approximately 36,615 outlets with 1.5 million employees. An extended organization definition: - An extended organization is a loosely coupled, self-organizing network of firms that combine their economic output to provide products and services offerings to the market. Firms in the extended enterprise may operate independently, for example, through market mechanisms, or cooperatively through agreements and contracts. They provide value added service or product to the OEM. Extended organization is the concept that a company does not operate in isolation because its success is dependent upon a network of partner relationships. The concept of extended organization was coined in 1990 at the Chrysler Corporation to explain the necessity for a collaborative relationship between supply chain members and focus attention on the competitive advantages the company felt could be gained when suppliers become partners.
erp_ebiz_qb_answers_2016.docx