LSO SAC2 Flashcards
What are the two external environments?
Operating and macro
What kind of degree of control does internal environments have?
High degree of control
What degree of control does operating environments have?
Some degree of control
What control does macro have? What sort of pressure?
No control. Lots of pressure
What are the 5 factors for operating environments (external)
Lobby groups, competitor, customers, suppliers and finance company
What are the 6 factors for macro environments (external)
Government, economy, technology, globalization, social values, climate/environment
The 5 internal factors are
Employees, structure, policies, management style, corporate culture.
What is a performance indicator?
Performance indicators are a specific criteria used to measure the achievement of success of an organization. For example finance and operations
What are two human resource performance indicators
Results of staff satisfactory survey
Level of staff turnover
What are the finance performance indicators?
Net profit figures
Number of sales
Percentage of market share
What are the marketing performance indicators
Results of customers satisfactory
Number of customer complaints
What are the operations of performance indicators
Rate of productivity growth
Level of wastage
Number of work place accidents
What does the performance indicator ‘results of staff satisfactory survey’ mean
This gives information about morals and satisfactory such as job security, managing, team, conditions and work life balance
What does the performance indicator ‘level of staff turnover’ mean
The number of staff who leave and have to be replaced. If this increases this suggests poor morals, no teamwork, negative culture and no management support.
What does the performance indicator ‘net profit figures’ mean
Revenue-expenses=net profit
An increase of net profit means it’s successful
What does the performance indicator ‘number of sales’ mean
Number if customers buying products/services. More customers mean more profit
What does the performance indicator ‘percentage of market share’ mean
The percentage of total sales in a market made by a LSO
What does the performance indicator ‘results of customer satisfactory’ mean
The opinions of customers on quality of products, service, staff interaction and facilities. Good results mean repeated customers and through word of mouth
What does the performance indicator ‘number of customer complaints’ mean
Number of product returns, increase in complaints is a negative. You must train staff, source better quality products
What does the performance indicator ‘rate of productivity growth’ mean
Productivity is the volume of output for a given volume of input. Improving productivity lowers costs and means more profit
What does the performance indicator ‘level of wastage’ mean
In the production process there is always wastage (pollution, packaging etc.) waste is a cost financially. If reduce waste means decrease costs
What does the performance indicator ‘number of workplace accidents’ mean
An increase in workplace accidents suggests: poor policies, poor training, poor maintenance, work hours to long. Work accidents is a cost: time lost to employees and LSO and financially (cost of repairs)
What is a stakeholder?
Any person or group who have an interest in the activities of the LSO
What are the 6 types of stakeholders in a LSO?
Customers, employees, suppliers, the community, shareholders, competitors
