The Impact Of Organisations Flashcards
Local organisations
operate in a specific local area e.g Wise Buys in Donabate
National Organisations
operate all over Ireland e.g the GAA
Global Organisations:
are very large and have operations all over the world e.g McDonalds
Economic Impacts of Organisations to Communities
From an economic outlook, organisations can have a positive and negative impact on the financial growth and wealth of a community
Positive Economic Impact on a Community
Employment
Tax Revenue
Improved Standard of living
Multiplier Effect
Employment
Direct employment in the organisation as well as jobs in related or spin-off businesses, such as transport, banking, suppliers and cleaning services
Tax Revenue
The organisation will contribute to local authority rates and taxes. The money collected is used to develop local services e.g roads, power supplies (known as infrastructure)
Improved Standard of Living:
Employees hired by the organisation will have disposable income, which will lead to an improved standard of living for these local people.
Multiplier Effect:
Extra income leads to increased spending in the local community, which supports other businesses such as shops and restaurants. The benefits are passed around the community.
Negative Economic Impact on a Community
Increased Pressure on Communities
Housing Shortage
Increase in the Cost of Living:
Increased Pressure on Communities
An increase in the number of organisations operating in an area can put pressure on existing local services and infrastructure and local government finances can be stretched.
Housing Shortage
An increase in the number of people living in an area can cause a shortage of suitable housing. Property and rental prices may increase which places a financial burden on local people.
Increase in the Cost of Living:
The cost of living can rise as more people enter the community and demand for goods and services increases
Stakeholders
is a term used to describe all those who belong to an organisation or are affected by its activities e.g employees, customers
Positive Social Impact on a Community
More local services
Increased Choice / Lower prices for consumers
Promotes Enterprise Culture
Improved quality of life