Chapter 1.6 - 1.9 - Large Scale Organisations

Question 1

What is the external environment

Answer 1

The external environment includes those things over which the business has little control. It may be divided into operating and macro environments

Question 2

What is an operation environment

Answer 2

An organisations operating environment refers too the outside factors with which the organisation directly interacts in the course of conducting its business

Question 3

What are an organisations suppliers

Answer 3

Suppliers are those organisations and individuals that supply resources to the organisation allowing it to conduct its operations

Question 4

What are customers

Answer 4

Customers are the buyers or users of the products of a large scale organisation

Question 5

What are lobby groups

Answer 5

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

Question 6

What factors are inside the operating sphere of an LSO

Answer 6

Suppliers and creditors
Competitors
Customers
Lobby groups

Question 7

What factors are inside the macro sphere of an LSO

Answer 7

Political influence 
Economic influence 
Legal influence
Social influence 
Technological developments

Question 8

What are the three environments that an LSO is influenced by

Answer 8

Internal
Operating
External/Macro

Question 9

What factors are inside the internal sphere of an LSO

Answer 9

Management
Employees
Policies
Processes

Question 10

What is the macro environment

Answer 10

The Macro environment is made up of the broad factors in the economy and society within which the organisation operates

Question 11

What is globalisation

Answer 11

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

Question 12

What is the key performance indicator profitability

Answer 12

It measures the earning performance of the organisation

Must be compared year on year to measure success

Question 13

What is the key performance indicator number of sales

Answer 13

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)

Question 14

What is effectiveness

Answer 14

Effectiveness is the degree to which an organisation has achieved its stated objectives

Question 15

What is efficiency

Answer 15

Efficiency refers to how well an organisation uses resources to achieve objectives

Question 16

What is a performance indicator

Answer 16

Performance Indicators are specific criteria used to measure the efficiency and effectiveness of the organisations performance

Question 17

What is net profit

Answer 17

Net profit is what remains when expenses are deducted from the revenue earned

Question 18

What is percentage of market share

Answer 18

Percentage of market share is the proportion of the total market that a business has, expressed as a percentage

Question 19

What is the rate of productivity growth

Answer 19

The rate of productivity growth measures the change in productivity in one year compared to the previous year

Question 20

What is a customer survey

Answer 20

A customer survey measures how satisfied customers are with the organisations performance

Question 21

What is a staff survey

Answer 21

A staff survey measures how satisfied staff are within the organisation

Question 22

What is the internal environment

Answer 22

The internal environment includes all things in which the organisation has some degree of control over

Question 23

What is staff turnover

Answer 23

It measures the number of staff who are leaving the organisation

Question 24

What are customer complaints

Answer 24

They indicate whether or not customers are satisfied with the performance of the organisation

Question 25

What is the level of wastage

Answer 25

The level of wastage measures the amount of waste created by the production process

Question 26

What does the number of workplace accidents indicate

Answer 26

It indicates how safe the workplace is for the employees

Question 27

When does benchmarking occur

Answer 27

It occurs when an organisation measures it’s performance against that of other leading organisations known for their excellence

Question 28

What are stakeholders

Answer 28

Stakeholders are groups and individuals who interact with the organisation and have an interest in its activities

Question 29

What is social responsibility

Answer 29

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

Question 30

What is ethical management

Answer 30

Ethical management refers to the process of abiding by moral standards and doing the right thing in the interests of all stakeholders

Question 31

What is the triple bottom line

Answer 31

The triple bottom line refers the economic, social and environmental performance of an organisation

Question 32

What are the stakeholders for an LSO

Answer 32

Shareholders
Management 
Unions
Employees
Customers
Suppliers
Community