1st Half Flashcards
Explain three characteristics of an LSO (Large Scale Organisation)
1 characteristic of an LSO is number of employees over 200, As stated by the Australian Bureau Of Statistics.
a 2nd characteristic Substantial total assets. value of what the organisation owns. Usually over 200 million
A 3rd characteristic number of business locations can be local, state, national and international. Large size of operations through multiple factories, branches and stores etc
Why are organisations considered unique in nature
Organisations are considred unique in nature due to their size and power. They often have more power than government in shapeing the world. they are unique due to their size and conrtibutions they make to the economy such as employment and encouraging research and development
Describe 2 different variations in business ownership (2 objectives of each)
A corporation is owned by shareholders and managed by the directors. Corporations can be privately owned by up to 50 share holders or they can be publiclyowned where they are listed on the Australian Stock Exchange (ASX) and have unlimited shareholders. The objective of a corporation is to make a profit and to accumulate assets.
another variation of business ownership is Not for profit organisations such as charities are controlled by their own board of management and must be registered as a charitable organisation. Charities are a not for profit organisation. Their objective is to provide assistance in the forms of goods, services or finances to disadvantaged groups.
Distinguish between profit and not for profit organisations
A for profit organisation focus is on making a profit accumulating assets and increasing marketshare WHERE AS a Not for Profit organisations focus is on providing a specific service to the community. Their main aims are to provide social, medical or humanitarian assistance.
Explain Three Management functions and give a strategy for each (2 advantages and disadvantages)
The management function exists to ensure that the goals and objectives of an organisation are being met by using available recourses effectively.
Human resources: Human recourses refer to the employees of an organisation, usually the most important asset of an organisation. A strategy which could be implemented would be to Re-train employees.
Marketing: Marketing refers to determining the areas their product or service should be supplied to and hoe it should be advertised. A strategy would be developing a new advertising campaign.
Discuss contributions Large Scale organisations make to the economy (2 Advantages and 2 Disadvantages) (Add definition pending answers)
LSO’s significantly contribute to employment as they employ over 200. LSO’s provide employment directly by hiring people to work in their organisation. They also provide significant indirect employment where money earnt is then spent in the local community therefore encouraging more employment. LSO’s assist with the GDP. This refers to the total monetary value of all goods and services produced in Australia in an one year period. The Australian Bureau of statistics report that approximately 50% of GDP is contributed by LSO’s. This benefits the economy as the higher the GDP the more creation of jobs for Australian workers. A negative contributions of LSO’s to the economy is that they may encourage outsourcing to overseas countries . Outsourcing is the practice of having non core tasks completed by another organisation. Organisations outsource as they believe it can bring positive benefits such as cost saving however this affects the Australian economy as work is being conducted overseas and is not increasing our GDP. However outsourcing can lead to downsizing where workers are laid off. It can also lead to a loss of expertise for Australian workers. Another negative contribution of LSO’s to the economy is damage to the environment activities of an organisation can lead to damage through polluting or contributing to greenhouse gas emissions. Environmental damage can have an impact on the economy in terms of cleaning up the damage.
Define the term internal environment and apply pressures within this environment
The internal environment refers to the actions, functions an pressures which occur within the organisation. One pressure includes employees. Employees want to work in a safe ethical environment and offers work life balance. This IMPACTS on an organisation in that they may need to develop appropriate policies and procedures. Another pressure would be the organisations corporate culture. CORPORATE CULTURE reflects the shared values, beliefs and expectations of employees. Corporate culture has an IMPACT on the organisation. A positive corporate culture should lead to improved morale and less staff turnover.
define the term operating environment and apply pressures from within this environment
The operating environment refers to the environment immediately external to the organisation. By which it has close interactions with when dealing business activities, the organisation has some control over this environment. One pressure would be suppliers. Suppliers provide resources to an organisation that are crucial to the production process. Suppliers want to know they will be paid on time and have an on-going relationship with the organisation.
Another pressure from this environment would be unions. Unions represent workers in the workplace. Thy act on behalf of the employee in attempt to get favourable pay and working conditions for employees.