Chapter 1.6 - 1.9 - Large Scale Organisations Flashcards
What is the external environment
The external environment includes those things over which the business has little control. It may be divided into operating and macro environments
What is an operation environment
An organisations operating environment refers too the outside factors with which the organisation directly interacts in the course of conducting its business
What are an organisations suppliers
Suppliers are those organisations and individuals that supply resources to the organisation allowing it to conduct its operations
What are customers
Customers are the buyers or users of the products of a large scale organisation
What are lobby groups
Lobby groups are groups of people who attempt to directly influence or persuade an organisation to adopt particular policies
These include : consumer groups, trade unions and specific issue groups
What factors are inside the operating sphere of an LSO
Suppliers and creditors
Competitors
Customers
Lobby groups
What factors are inside the macro sphere of an LSO
Political influence Economic influence Legal influence Social influence Technological developments
What are the three environments that an LSO is influenced by
Internal
Operating
External/Macro
What factors are inside the internal sphere of an LSO
Management
Employees
Policies
Processes
What is the macro environment
The Macro environment is made up of the broad factors in the economy and society within which the organisation operates
What is globalisation
Globalisation is the effect of hi-tech communications, lower transport costs, unrestricted trade and financial flows turning the whole world into a single market, producing a more inter grated global economic system
What is the key performance indicator profitability
It measures the earning performance of the organisation
Must be compared year on year to measure success
What is the key performance indicator number of sales
Measures the number of products sold
Is a good measure if it is over a period of time
Higher sales do not mean higher profits due to factors (higher advertising costs/reduction in price to boost sales would both impact profits)
What is effectiveness
Effectiveness is the degree to which an organisation has achieved its stated objectives
What is efficiency
Efficiency refers to how well an organisation uses resources to achieve objectives
What is a performance indicator
Performance Indicators are specific criteria used to measure the efficiency and effectiveness of the organisations performance
What is net profit
Net profit is what remains when expenses are deducted from the revenue earned
What is percentage of market share
Percentage of market share is the proportion of the total market that a business has, expressed as a percentage
What is the rate of productivity growth
The rate of productivity growth measures the change in productivity in one year compared to the previous year
What is a customer survey
A customer survey measures how satisfied customers are with the organisations performance
What is a staff survey
A staff survey measures how satisfied staff are within the organisation
What is the internal environment
The internal environment includes all things in which the organisation has some degree of control over
What is staff turnover
It measures the number of staff who are leaving the organisation
What are customer complaints
They indicate whether or not customers are satisfied with the performance of the organisation
What is the level of wastage
The level of wastage measures the amount of waste created by the production process
What does the number of workplace accidents indicate
It indicates how safe the workplace is for the employees
When does benchmarking occur
It occurs when an organisation measures it’s performance against that of other leading organisations known for their excellence
What are stakeholders
Stakeholders are groups and individuals who interact with the organisation and have an interest in its activities
What is social responsibility
Social responsibility is 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
What is ethical management
Ethical management refers to the process of abiding by moral standards and doing the right thing in the interests of all stakeholders
What is the triple bottom line
The triple bottom line refers the economic, social and environmental performance of an organisation
What are the stakeholders for an LSO
Shareholders Management Unions Employees Customers Suppliers Community
