2nd Half

Question 1

Define the term macro environment and apply pressures from this environment

Answer 1

The macro environment refers to the broad operating conditions in which a business operates. The business has no control over this environment. One pressure from this environment is political or legal pressure. It refers to the Changes in government policies or laws this can affect the way in which businesses operate. Eg Occupational Health and Safety.
Another would be the technological pressures. Rapid advancements in technology means that if a business does not keep up with ITC they will have little chance of being competitive In their industry.

Question 2

Define performance indicator and be able to apply a performance indicator

Answer 2

Performance indicators are criteria used to measure the performance of the organisation in terms of efficiency & effectiveness. A PI is a tool used to measure progress towards the achievements of a set goal.
Results of customer satisfaction survey: measures how satisfied staff are within the organisations performance. A satisfied customer will remain loyal and repeat purchases, customers being satisfied can reflect well trained employees and good customer service.
Level of staff turnover: Measures the amount of staff who are leaving the organisation. It can also be an indicator of staff satisfaction. Decreased turnover = satisfied customers.

Profitability: Measures the earning performance of the organisation. Profitability depends on the revenue earned by an organisation and the ability of an organisation to increase selling prices to cover purchase costs. An organisation that improves profitability is considered to have performed successfully.

Question 3

Define Stakeholder and provide two interest for customers,suppliers,competitors and employees

Answer 3

A Stakeholder is a group or individual who has a vested interest in the operations of a business. Stakeholders can be affected by the actions of an organisation. Stakeholders have their own individual objectives in what they want to achieve relating to the business.

**Customers: ** -To obtain good quality products & services

                   -To support Australian owned businesses

**Suppliers: ** -To be paid promptly

                    -To establish and guarantee a long term                             preferred supplier relationship. 

Competitors: -To ensure they gain a competitive edge over the business

                     -To differentiate their product or service from other businesses 

**Employees: ** - To receive a fair wage or salary

                    -  To gain job satisfaction

Question 4

Explain why conflict may occur between different stakeholders

Answer 4

Stakeholders have conflicitng interests and their own needs may contridict needs of other stakeholders.

Eg: conflict may occur between management and employees. Management have a desire for profit could lead to cost cutting and may affect workplace safety resulting in more workplace accidents

Question 5

Explain ethical and social management considerations between different stakeholders

Answer 5

Ethics: Refers to the process of following moral standards and doing the right thing in the interest of all stakeholders.

Social:

Question 6

Define and discuss:

Merger, Takeover, Privatisation, National Organisation, Transnational organisation

Answer 6

Merger: A merger is an agreement between two or more businesses to join together to form one united organisation. Mergers may occur to increase market share. However, it may lead to job losses & competition loss.

Takeover: A takeover occur when one business purchases a controlling share (50.1% +) in another business. A takeover may be hostile or mutually beneficial. Takeovers may lead to increased market share, however can lead to job loss and loss of competition.

Privatisation: Is the process of selling government owned businesses ro the private sector. The business may be floated whereby the public can buy shares.

National organisation: A national organisation Is where an organisation is owned an based in one country. And advantage is that the organisation will provide goods and services to the domestic market which should encourage local employment. Dis advantage is that they miss out on the global market.

Transnational organisation: Is where the organisation id owned in on country but has branches in others. An advantage is that market share would increase as they get sales from the global market. A disadvantage is that they require more natural resources which damages our environment.