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Boni Wholesalers Ltd. Provides a variety if goods to customers in Nairobi. The wholesale business is owned and managed by Mr. Boniface Ndambuki. Mr....

      

Boni Wholesalers Ltd. Provides a variety if goods to customers in Nairobi. The wholesale business is owned and managed by Mr. Boniface Ndambuki. Mr. Boni purchases goods on credit from his well established suppliers. He has a large box-file containing supplier details and another equally large one containing commodity details. The commodity file also indicates the levels of inventory held in the store.
When a customer makes his order, the sales office accesses the commodity file to check if there is sufficient stock of the required items. If there is sufficient stock, then the sales office prepares a delivery note which is forwarded to the accounts office where an invoice is prepared. The invoice and the delivery note accompany the goods from the store to the customer who prepares a payment cheque for Boni Wholesalers Ltd. A copy of the delivery note is filed in the commodity file which now shows that the stock has reduced by the amount delivered to the customer.
Sometimes the stock of the required item is not sufficient to service the customer order. In this case the supplier‟s file is accessed to select the supplier that Boni
Wholesalers Ltd. Will order from. The sales office then produces purchase orders and dispatches them to the selected supplier. The supplier prepares his own invoice and delivery note which accompany the ordered goods to the stores of Boni Wholesalers Ltd. Once received, the invoice is forwarded to the accounts office for payment to the supplier. The delivery note is used to update the commodity as well as the supplier details files.
Required: a) In what ways can a business organization be considered as a system? Derive illustrations from Boni Wholesalers.

  

Answers


Gregory
a) A system is a set of interacting components that work together to accomplish specific goals. Systems may be identified from specific characteristics. The main systems characteristics include:
o Purpose
o Rationale o Efficiency o Effectiveness o Inputs o Outputs o Transformation roles o Feedback o Throughput o Boundary o Environment
o Interfaces

Therefore a business organization may be considered as a system because it exhibits the characteristics of a system. With reference to Boni Wholesalers, these are:
1. Purpose
Boni Wholesalers? purpose is to buy goods from suppliers and sell them in bulk to customers. This is facilitated through its sales office and accounts office.
2. Rationale
The justification for the existence of Boni Wholesalers is the need to make profit.
3. Input
Boni Wholesalers has supplier delivery notes, supplier invoices and payments from customers as inputs.
4. Environment
Boni Wholesalers exists in a business environment containing other business systems such as the suppliers and also individual entities such as customers. Nairobi is the business environment for Boni Wholesalers.
5. Interfaces
Boni Wholesalers has a meeting point with the suppliers system where inputs and outputs are shared. It also has a meeting point with the customers where inputs and outputs are shared.
6. Transformation rules
Boni Wholesalers has well defined rules that specify how the input is processed to produce output. For instance, a customer order is passed onto the sales office which verifies if there is sufficient stock before preparing a delivery note which is forwarded to the accounts office where an invoice is prepared which accompanies the goods from the store together with the delivery note to the customer who then prepares a cheque for Boni Wholesalers Ltd.
7. Boundary
Boni Wholesalers has a boundary that is its organizational boundary (geographical boundary).

Gregorymasila1 answered the question on March 28, 2018 at 14:36


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