Chapter One - Large Scale Organisations in Context

Question 1

Large-scale Organisation

Answer 1

• Has multiple locations ie. Several states or countries
• Value of assets is more than $200 million
• Complex management structure: hierarchy
• Employs more than 200 employees
• Profit and revenue are often in the millions

Question 2

Multinational Corporation

Answer 2

Has facilities and assets in at least one country other than its home. Such companies have offices and/or factories in different countries and usually have a centralised head office where global management in co-ordinated.

Question 3

Board of directors

Answer 3

A body of elected or appointed members who jointly oversee the activities of a company.

Question 4

Managing Director

Answer 4

The CEO. The most senior corporate officer in charge of managing an organisation.

Question 5

Corporation

Answer 5

A large company or group of companies authorised to act as a single entity and recognised as such in law.

Question 6

Company

Answer 6

A commercial business

Question 7

Shareholder

Answer 7

A person who owns shares in a company

Question 8

Government business enterprise

Answer 8

A separate legal entity with the power to contract in its own name and that can sue and be sued

Question 9

Government department

Answer 9

A sector of a national or state government that deals with a particular area of interest

Question 10

Not-for-profit organisation

Answer 10

An organisation whose primary objective is not to make a profit

Question 11

Economic Growth

Answer 11

An increase in the amount of goods and services produced per head of the population over a period of time.

Question 12

Exports

Answer 12

Send goods or services to another country for sale

Question 13

Imports

Answer 13

Bring goods or services into a country from abroad for sale

Question 14

Balance of Payments

Answer 14

The difference in total value between payments into and out of a country over a period

Question 15

Invention

Answer 15

The creation of a product or introduction of a process for the first time

Question 16

Innovation

Answer 16

Occurs when someone makes a significant contribution or improvement to an existing product, process or service

Question 17

Infrastructure

Answer 17

The basic physical and organisational structures and facilities needed for the operation of a society or enterprise

Question 18

Globalisation

Answer 18

The process by which a business or other organisations develop international influence or start operating on an international scale.

Question 19

Union

Answer 19

PIA (pains in the ass)
An organisation intended to represent the collective interests of workers in negotiations with employers over wages, hours and working conditions

Question 20

Conflict of Interest

Answer 20

A situation where the concerns or aims of two different parties are incompatible

Question 21

Human Resources

Answer 21

The personnel of a business or organisation regarded as a significant asset in terms of skills and abilities.

Question 22

Marketing

Answer 22

The action of a business promoting and selling products or services, including market research and advertising

Question 23

Research and Development

Answer 23

Work directed towards the innovation, introduction, and improvement of products and processes

Question 24

Finance

Answer 24

The management of large amounts of money, especially by governments or large companies

Question 25

Operations

Answer 25

Business practices

Question 26

Objective

Answer 26

An aim or goal held by a business

Question 27

Vision statement

Answer 27

Indicates what the company wants to do, and guides it towards becoming that by setting a defined direction for the company’s growth

Question 28

Mission Statement

Answer 28

A formal summary of the aims and values of a company

Question 29

Strategies

Answer 29

Ways and means of achieving set goals or aims

Question 30

Downsizing

Answer 30

Make a company smaller by shedding staff

Question 31

Outsourcing

Answer 31

Reduce costs by transferring portions of work to outside suppliers rather than completing it internally

Question 32

Internal Environment

Answer 32

Elements within the organisation, such as employees, management and corporate culture, which effects employee behaviour. Can affect the organisation as a whole, or just the manager

Question 33

External Environment

Answer 33

Factors outside the company that affect the company’s ability to function. Some can be manipulated by marketing, whilst others can’t, and the organisation will need to adapt

Question 34

Operating Environment

Answer 34

See ‘External Environment’

Question 35

Customers

Answer 35

A person who buys goods or services from a shop or business

Question 36

Organisation

Answer 36

Two or more people working together to achieve an objective