Question

300 WORDS REQUIREMENT!!!

Discuss the business activities that comprise the conversion process. Please state your reasons in detail.

Answer 1

Business activities that comprise the conversion process involve those activities that are related to transformation of resources into goods or services. There are various resources that a business uses. These resources are materials (this also includes raw materials inventory), labor (this mainly includes human resources that are required for operations of a business activity), and overheads (indirect materials, indirect labor, and other expenses that are necessary for the conversion process to function efficiently for a business). Thus business activities that comprise the conversion process are concerned with the conversion of input resources into tangible products or services. In cases of such activities costing of goods and services are involved and management of inventories is imperative.

Conversion process across an organization or within an organization can be highly diverse and usually and generally depends on the type of goods and services being manufactured and provided. It also depends on the technology and resources utilized restrictions of regulators, governments, society, or customers, and the preferences of customers and management. The end objective of conversion process is maximization of profits and value creation and the sub-objectives are the use of efficient conversion methods to optimize capacity, reduce number of errors, meet conversion goals, use less quantity of organizational resources etc.

The diversity of conversion processes makes it difficult to propose a single generalized set of events that make up the process. Conversion process differs within an industry for different companies and it also differs across different industries as well. Also a business activity may utilize more than one type of conversion process. What should be noted is that at the focal point of any conversion process is a sequence of activities that takes goods and services acquired via the procurement process and transforms them into goods and services suitable for the end customers (and sold via the order to cash process).

Examples of different business activities and company name examples are: assembly (companies like Ford, Toyota, GM etc), growing and harvesting (agricultural companies and food product companies), research and development activities and discovering (most prominent in 3M).

(344 words).