Unit 1

Question 0

Globalisation

Answer 0

Globalisation is the effect of hi - tech communications, lower transport costs and unrestricted trade and financial flows turning the whole world into a single market, producing a more integrated global economic system.

Question 1

Macro environment

Answer 1

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

Question 2

Effectiveness

Answer 2

Effectiveness is the degree to which an organisation has achieved it’s stated objectives

Question 3

Efficiency

Answer 3

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

Question 4

Performance indicators

Answer 4

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

Question 5

Net profit

Answer 5

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

Question 6

Number of sales

Answer 6

Number of sales measures the number of products sold

Question 7

Percentage of market share

Answer 7

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

Question 8

The rate of productivity growth

Answer 8

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

Question 9

Customer survey

Answer 9

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

Question 10

Staff survey

Answer 10

A staff survey measures how satisfied staff are within the organisation

Question 11

Staff turnover

Answer 11

Staff turnover measures the number of staff who are leaving the organisation

Question 12

Customer complaints

Answer 12

Customer complaints indicate whether or not customers are satisfied with the performance of a the organisation.

Question 13

Level of wastage

Answer 13

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

Question 14

Number of workplace accidents

Answer 14

The number of workplace accidents indicates how safe the workplace is for employees

Question 15

Benchmarking

Answer 15

Benchmarking occurs when an organisation measures its performance against that of other leading organisations known for their excellence.

Question 16

Stakeholders

Answer 16

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

Question 17

Social responsibility

Answer 17

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 18

Ethical management

Answer 18

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

Question 19

Shareholders

Answer 19

Shareholders purchase shares in a company, so they are partial owners. Shareholders want the organisation that they have invested in to be profitable as they receive a proportion of the profits (called dividends).

Question 20

Management

Answer 20

Management has the responsibility of running a profitable or successful organisation.

Question 21

Employees

Answer 21

Employees are vital to an organisation as they manufacture or produce the product the organisation sells. The quality of the product depends on their skill and commitment to the process.

Question 22

Unions

Answer 22

Unions represent employees in many workplaces in Australia. They attempt to negotiate favourable pay and work conditions on the employees’ behalf.

Question 23

Profit

Answer 23

A financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something.

Question 24

Conflict of interest

Answer 24

A conflict of interest (COI) is a situation in which a person or organization is involved in multiple interests (financial, emotional, or otherwise), one of which could possibly corrupt the motivation of the individual or organization.

Question 25

Management functions

Answer 25

Management functions can be defined as areas or divisions of an organisation that carry out particular tasks or activities.
(R&D, human recourses, operations, finance, marketing)

Question 26

Positive contributions lso’s make to the economy

Answer 26

• Contribution to economic growth
• Contribution to employment
• Contribution to exports
• Contribution to research and development
• Contribution to infrastructure growth

Question 27

Negative contributions by LSO’s

Answer 27

• Downsizing
• Outsourcing
• Damage to the environment

Question 28

Role of board of directors?

Answer 28

A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organisation.