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Global Bike Inc. is a world class bicycle company making professional and touring off-road racing cycles. Global Bike Inc. is registeredin the US and the German subsidiary Global Bike Germany GmbH. In America, the three locations Dallas, San Diego and Miami are assigned to the sales regions (East and West). In Germany, Hamburg is established in the North and Heidelberg in the South. The figure shown below shows the enterprise structure. In order to visualize its organizational and process structures, you will provide a simple explanation of how below given model hierarchy levels work at GBI:

  1. Core business level,
  2. Overview level,
  3. Detail level and

Document level

The Global bike company operates on a hierarchical business model with distinct levels that function in diverse ways. The company’s core business level includes the overall business management that foresees the other branches and facilitates operations. The company is headquartered in Dallas with well-established finance material planning, administration IT, and human resources management. The company’s headquarters in Dallas facilitates product exports and internet-based commodities; the company also distributes supplies for the central and internet retailers. The company’s overview of the company comprises the overall organization representing the US branches and the global bike Inc. based in Germany. The core business level includes the general business, while the overview level comprises the company’s management overall in the US and German and consists of the headquarters.

Global bicycles specialize in the manufacture of bicycles and improve its products’ overall performance in both the domestic and international markets.The company’s third hierarchical level includes the global bike US East and US west while the German level embraces the German north and South. The level performs in ensuring the provision of services, and a majority of operations occur at this level. The document level of global bike Inc. includes San Diego, Miami, Dallas, Hamburg, and Heidelberg. The business levels include the core customer interaction whereby operations take place.


What is difference between Finance (FI) and Controlling (CO) in SAP? Does it need to be synchronized in SAP? Explain in your view.


SAP is the global leader in the production of software used in the management of operations. The organization uses financial accounting reporting measures and cost controlling measures.  The SAP FICO module covers most business processes due to its robust nature in most industries. The modules get characterized as one of the most essential and broadly used in SAP. The FI module aids organizations in maintaining their financial records for the management to determine their organization’s financial position. Financial reporting aids the organization in determining the profitability it realizes from operations. The Controlling module, on the other hand, provides information that aids in the operation management process. The controlling module aids in the determination of better decisions for the organization and strategic and operational planning. The difference between the FI module and the CO module is that they deviate in information delivery. The FI module provides information on performance and the CO module provides information on better decision making in an organization.


Give an example that explains how the procurement process is essential for organizations to create and deliver products and/or services to their customers.


The procurement process in organizations involves acquiring products and services after careful determination of terms and tendering process. The procurement process aids organizations in delivering products and services to their customers. Company XYZ deals with the manufacturing of food products serving a broad customer base in the Jeddah region. The customers in the area appreciate timely delivery and good quality of the products. Due to the high demand for quality and timeliness, the company needs to secure reliable suppliers to provide essential production materials.

                  The company has a well-defined procurement department that works to secure raw food products from other firms. The department accepts tenders, which get determined by the procurement officials and select the best tender offer. The company then gets a delivery for the acquired products and proceeds to produce its desired end products. The procurement process helps a company facilitate production activities and deliver goods and services to its customer base.


Explain how the SAP ERP system promotes an integrated approach to business processes.


            EPR systems aid organizations in experiencing a set of benefits during operations and business processes. The system aids in the integration of approaches related to business processes. The benefits attracted after the adoption of SAP EPR systems aid organizations gain benefits, including enhanced efficiency and productivity, cost reduction, improved data analysis and reporting, and goal achievement. The EPR systems help organizations improveefficiency by increasing employee information access, making them address customer queries faster. The adoption of EPR systems aids organizations in maintainingimproved communication hence realizing improved service delivery.             EPR systems aid organizations in integrating operations and business processes by reducing the costs involved. Companies reduce operations and labor costs in the various departments in a firm. Organizations can enhance their effectiveness in operations by ensuring transparent reporting,and this reduces potential risks. EPR adoption in organization aids in the enhancement of inconsistent processes, ensuring managers make informed decisions. Major organizations achieve market competitiveness and productivity by implementing SAP EPR systems

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