12 BUS- Ch 1 Large Scale Organisations In Context Flashcards
Large scale organisation
Employs 200 or more people, earns revenue in the millions, or has assets of more than $200 million.
Multinational corporation
Owned and based in one country and operates in many countries throughout the world.
Corporation
Owned by shareholders and aims to make a profit.
Shareholder
Any person who owns shares in a company
Government Business Enterprise
Government owned and operated
Objective
A desired goal, outcome or specific result that an organisation intends to achieve.
Vision statement
States what the organisation aspires to become
Mission statement
Expresses why an organisation exists, it’s purpose and how it will operate.
Strategies
The actions that an organisation takes to achieve specific objectives.
Gross Domestic Product
The total monetary value of all goods and services produced in a country over one year.
Research and Development
Activities undertaken to improve existing products and create new ones.
Invention
The development of something new
Innovation
Occurs when something already established is improved upon.
Infrastructure
The stock of basic facilities and capital equipment needed for the functioning of a country or area.
Downsizing
Involved workplace staff reductions, with the elimination of jobs and positions.
Outsourcing
The contracting of some organisational operations to outside suppliers.
Internal environment
Includes all those things over which the organisation has some degree of control.
External environment
Includes those things over which the business has little control. It may be divided into the operating environment and the macro environment.
Operating environment
Outside factors with which the organisation directly interacts in the course of conducting it’s business
Customers
Buyers or users of the products of a large-scale organisation
Suppliers
Organisations and individuals that supply resources to the organisation, allowing it to conduct its operations.
Competitors
Other organisations that offer rival products or services
Lobby groups
Groups of people who attempt to directly influence or persuade an organisation to adopt particular policies
Macro environment
Made up of the broad factors in the economy and society within which the organisation operates.
Globalisation
The effect of more efficient communications systems, lower transport costs and unrestricted trade which produces a more integrated global economic system
Effectiveness
The degree to which an organisation has achieved its stated objectives
Efficiency
How well an organisation uses resources to achieve objectives
Performance indicators
Specific criteria used to measure the efficiency and effectiveness of the organisation’s performance
Net profit
What remains when expenses are deducted from the revenue earned
Number of sales
Measures the amount of products sold
Percentage of marketshare
Proportion of the total industry that a business has, expressed as a percentage.
Rate of productivity growth
Measures the change in productiveness in one year compared to the previous year.
Customer survey
Measures how satisfied customers are with the organisation’s performance
Staff survey
Measures how satisfied staff are with the organisation
Staff turnover
Measures the number of staff who are leaving the organisation
Customer complaints
Indicate whether or not customers are satisfied with the performance of the organisation
Level of wastage
Measures the amount of waste created by the production process
Number of workplace accidents
Indicate how safe the work environment is for employees
Benchmarking
Occurs when an organisation measures it’s performance against that of other leading organisations known for their excellence
Organisation
Two or more people working together to achieve an objective.
Stakeholders
Groups and individuals who interact with the organisation and have a vested interest in its activities
Social responsibility
The obligations a business has over and above its legal responsibilities to the wellbeing of employees and customers, shareholders and the community as well as the environment.
Ethical management
The process of abiding by moral standards and doing the ‘right’ thing in the interests of all stakeholders
Triple bottom line
The economic, social and environmental performance of an organisation
Balance of payments
A country’s record of its trade and financial transactions with the rest of the world.
