Chapter One - Large Scale Organisations in Context Flashcards
Large-scale Organisation
- 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
Multinational Corporation
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.
Board of directors
A body of elected or appointed members who jointly oversee the activities of a company.
Managing Director
The CEO. The most senior corporate officer in charge of managing an organisation.
Corporation
A large company or group of companies authorised to act as a single entity and recognised as such in law.
Company
A commercial business
Shareholder
A person who owns shares in a company
Government business enterprise
A separate legal entity with the power to contract in its own name and that can sue and be sued
Government department
A sector of a national or state government that deals with a particular area of interest
Not-for-profit organisation
An organisation whose primary objective is not to make a profit
Economic Growth
An increase in the amount of goods and services produced per head of the population over a period of time.
Exports
Send goods or services to another country for sale
Imports
Bring goods or services into a country from abroad for sale
Balance of Payments
The difference in total value between payments into and out of a country over a period
Invention
The creation of a product or introduction of a process for the first time
Innovation
Occurs when someone makes a significant contribution or improvement to an existing product, process or service
Infrastructure
The basic physical and organisational structures and facilities needed for the operation of a society or enterprise
Globalisation
The process by which a business or other organisations develop international influence or start operating on an international scale.
Union
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
Conflict of Interest
A situation where the concerns or aims of two different parties are incompatible
Human Resources
The personnel of a business or organisation regarded as a significant asset in terms of skills and abilities.
Marketing
The action of a business promoting and selling products or services, including market research and advertising
Research and Development
Work directed towards the innovation, introduction, and improvement of products and processes
Finance
The management of large amounts of money, especially by governments or large companies
Operations
Business practices
Objective
An aim or goal held by a business
Vision statement
Indicates what the company wants to do, and guides it towards becoming that by setting a defined direction for the company’s growth
Mission Statement
A formal summary of the aims and values of a company
Strategies
Ways and means of achieving set goals or aims
Downsizing
Make a company smaller by shedding staff
Outsourcing
Reduce costs by transferring portions of work to outside suppliers rather than completing it internally
Internal Environment
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
External Environment
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
Operating Environment
See ‘External Environment’
Customers
A person who buys goods or services from a shop or business
Organisation
Two or more people working together to achieve an objective
