AOS1 LSO's In Context Flashcards
Define stakeholders.
A stakeholder is any individual or group that has a vested interest in the business of is affected by its dealings.
These can include any customers, suppliers or anyone involved in the organisation itself as they are affected by decisions made by LSO’s.
Define objective
Objectives are desired goals, outcomes or specific results that an organisation intends to achieve. An example of a business objective could be to increase profit by 10% by the end of the year.
Define business ethics.
Business ethics is the accepted set of moral values and corporate standards of conduct in a business organisation. This can vary from one organisation to another but a good example of ethics is being honest in business dealings with others.
Define performance indicators.
Performance indicators are measures and tests that are used by companies to determine whether they are reaching their set objectives, both performance and operational. They are used so that stakeholders know if the company is being efficient or not. They are broken up into two categories, which are financial and non-financial.
Define outsourcing.
Outsourcing means that some part of an organisations function is transferred to an external person or organisation. Outsourcing means that staff currently performing those tasks could lose their jobs. Because of this some LSO’s have been condemned for outsourcing overseas
Define shareholders.
Are individuals that purchase shares in a LSO. They become partial owners of the LSO and are usually wanting to make a dividend. If the LSO is successful then that will increase the price of shares leaving shareholders to have a profit from their investment.
Define not for profit organisations.
Not for profit organisations include charities and foundations. The purpose of these organisations is to provide goods and services to benefit the community. World vision is a not for profit organisation as they fundraise to distribute food and essential clothing and fresh water to many people in need.
