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BAFS Compulsory Part:
Key Business Functions
Sharing of Teaching Strategies
Mabel Lee, Good Hope School
5 July 2013
Explanatory Notes in Trimmed Curriculum (updated as at May 2013)
• Describe the role and importance of the following key business functions: human resources management, financial management, operations management, marketing management, information management and risk management
• Explain and appreciate the interrelationship and integrated nature of different business functions in solving business problems
Marketing Management Marketing Mix 4P
Product Strategy
Price Strategy
Place Strategy
Promotion Strategy
Operations Management
5 Operations Management Tasks
Forecasting Demand & Planning for Capacity
Facility Location; Process & Layout Design
Work Scheduling
Inventory Management
Quality Assurance
Human Resources Management
5 Human Resources Management Tasks
Human Resources Planning
Recruitment and Selection
Training and Development
Performance Appraisal
Compensation and Benefits Management
Financial Management
4 Financial Management Tasks
Capital Investment Appraisal
Fund Raising / Financing
Budgeting
Financial Reporting
Risk Management
4 Risk Management Strategies
Risk Avoidance
Risk Transfer
Risk Reduction
Risk Assumption
Information Management
Collecting &
Processing Data
Applicable to DSE 2014 & 2015 only
5 Characteristics of
Quality Information Contribution of ICT Providing &
Storing Information for Decision-making
Information Management
Teaching Strategy: Case Study
• Resources: EconSchool articles E.g.
– Ocean Park Halloween Bash 2012 – School-based worksheets
– Examples of DSE questions
New Challenge
• DSE 2013 Paper 1B Q4
“Information management can support the human resources department of a company in different ways. List three of them.
(3 marks)”
Possible Combination (1)
Information Management Human Resources Department List 3 ways
(DSE 2013 Paper1B Q4) Marketing Department …
Operations Department … Finance Department …
Possible Combination (2)
Risk
Avoidance
Risk
Transfer
Risk
Reduction
Risk
Assumption Human
Resources Department
… … … …
Marketing Department
… … … …
Operations Department
… … … …
Finance
Department
… … … …
BAFS Compulsory Part:
Key Business Functions
Simon Lee,
Senior Lecturer (Accounting/ Finance),
School of Hotel and Tourism Management, CUHK Business School
5 July 2013
Cash Flows Between the Firm and the Financial Markets
B. Firm invests in assets
Current Assets Fixed Assets
C. Cash flow from firm’s assets
D. Government
E. Retained cash flows
A. Firm issues securities
F. Dividends and debt payments
Financial Markets
Short-term debt Long-term debt Equity shares
• Many business functions are paired in give-get exchanges
• The basic exchanges can be grouped into five major cycles – Revenue cycle
– Expenditure cycle
– Production/Operation cycle – Human resources/payroll cycle – Financing cycle
Business Functions
Revenue Cycle (Sales)
Expenditure
Cycle (purchases) Production Cycle
Human Res./
Payroll Cycle Financing
Cycle
Funds Funds
Finished products
Labour Raw
material
Funds
Major Business Functions
• Marketing and Sales
• Human resources
• Financial management
• Operations management
• Risk management
• Information management
Example – MTR Corporation
• Commercial Director (Marketing and Sales)
• HR Director (Human Resources)
• Finance Director (Financial Management)
• Operations Director (Operations Management)
• Risk management (Construction, Railway and Property Business)
• Head of IT (Information Management)
• Projects Director
• General Manager – Corporate Relations
• Property Director
Example – Cathay Pacific Airways
• Director Personnel (HR Management)
• Director Flight Operations, Director Service Delivery, Engineering Director (Operations Management)
• Director Sales and Marketing (Marketing Management)
• Director Information Technology (Information Management)
Example – Shangri-La Asia Ltd
• Chief Finance Officer (Financial Management)
• Chief Information Officer (Information Management)
• Chief Marketing Officer (Marketing and Sales)
• Chief Operations Officer, Group Director of Food and Beverage, Group Director of Rooms (Operations)
• Group Director of Human Resources (Human Resources Management)
• Group Director of Engineering
• Senior Design Director