Business Management Unit 3, Area Of Study 1

Front 1

Why is an LSO considered unique in nature?

Back 1

A large scale organisation (LSO) is considered unique in nature, for its size and power. It also is considered unique for its ability to shape the world, more so than governments. They also encourage research and development.

Front 2

3 Characteristics of an LSO

Back 2

1. Employs over 200. An organisation is considered large if it employees 200+ according to the Australian Bauro of statistics.
2. Substantial total assets. Large scale organisations value of what it lds is in the millions
3. Number of business locations. The locations can be state, local, national or global.

Front 3

2 Different business ownerships

Back 3

Corporations: A corporation like Qantas is owned by shareholders and managed by a board of directors. It's main goal is to attain a profit and accumulate assets. It can be a privately owned business with a maximum of 50 shareholders (PTY LTD) or a publicly owned business where it is listed on the Australian stock exchange, and has unlimited shareholders.
Foundation: A foundation is a not for profit organisation who's aim is to raise funds or awareness to a particular issue in the community. Research is undertaken to help solve the issues.

Front 4

Distinguish between a for profit and not for profit organisation

Back 4

A for profit organisation is an organisation like Qantas, its main goals are to increase marketshare, attain assets and please shareholders. All whilst making a profit. Whereas a not for profit organisation like Red-cross aims to provide a a service to an underpriveliged parts of the community. It's usually through social, humanitarian or medical services.

Front 5

Explain 2 management functions and give a strategy for each

Back 5

Management functions are ways business can assure the businesses goals and objectives are being met, and it's recourses are being used effectively
One management function would be human recourses. Human recourses refers to the emplyees of the organisation. usually the most important asset of an organisation. A stratagy that could be used would be to re train employees, to asure they are operating at their full potential.
Another management function would be marketing. Marketing refers to how a product or service, will be advertise, and who it should be supplied to. A stratagy would be to make a new advertising campaign

Front 6

Positive contributions an LSO makes to the economy

Back 6

AN LSO provides direct and indirect employment. It provides sigificant employment within the organisation andcontributs a significant amount to indirect employment where money earnt is then spent on the community anf thus creating more employment, benefitting the economy.
Another positive contribution would be that they stimulate infustructure growth. Infustructure refers to the physical rescources of a community such as freeways, airports and communitcation systems. This benifits the economy as the local community members and businesses get to use the improved infrastructure.

Front 7

Two negative contributions.

Back 7

Outsourcing. An LSO may practice outsourcing which is the process of giving non core activities to other organisations to complete. Outsourcing can be practiced to save costs, but in negitivly effects our economy as outsourcing brings a loss of expertise for australian workers and a loss o jobs, possibly through downsizing.
Environmental damage. An LSO uses a larg amount of natural recources. An LSO can contribute to green house gas emmissons, and polution. this negatively effects the economy as it costs money to repair the damage done.

Front 8

Internal, 2 pressures and impacts

Back 8

The internal environment refers to the functions, activiteis and pressures which occour within the organisation. The organisation has complete control over this environment. One pressure would be employees. Employees desire a sefe, thical work environment and fair pay. This impacts the organisation as they may need to develop new polocies and proceadures to satsfy their employees. Another would be corporate culture. Coroperate culture refers to the beliefs,values and expectations shared by all employees. This impcts an orgainsation as a positive organisation can increase prductivity and result in less staff turnover.

Front 9

Operating, 2 pressures

Back 9

The operating environment refers to the enviroonment immiddently external to an organisation. overwhich it has close interaction with when dealing business actvities. One pressur would be suppliers. duppliers provide crucial recources nececarry in the production process. Suppliers want to be paid promptly, and secure a long term relationship between the organisation. This could impact the organisation as they may only need a short supply or materials, and so it would cost them more. Another pressure would be competitors. Competitors are other organisations that offer rival products or services. Commpetitors aim to have competitive edge over other competitors and differenciate thier products from others. This may impact an organisation as they would need to undertake market research t stay aware of its competitors and respond in a competitive way to sat on top.

Front 10

Macro, 2 pressures and functions.

Back 10

the macro envrionment refers t the broad operating environment in which an organisation operates in. the orgaination as no control over this environment. One pressure would be political or leagal pressures. This refers to the laws st in place by governments refering t the operations of a work place. if the government changes its laws then an organisation must adapt and change it polocies and proceadures to abide by them. Another pressure would be technological. Technological refers to the ever chnaging and modernising of the technological world. this impacts the orgainastion as it must stay up to date to be competitive in it industry.

Front 11

Define performance indicator

Back 11

A performance idicator is criteria used to measure the performance and porgress towards set goal in terms of efficiency and effectivness, they provide a point of comparison. Results of customer satisfaction servay. Tis PI measur hoe satsfied customers are with the organisation. satisfied customers are likly to remain loyal and repeat purchases another performance inddicator would be amount of staff turnover. staff turnover refers to how many employees have left the organisation. if there is a small amount of staff turnover, it means the organisation is providing the employees with a satifactory working environment.

Front 12

Define stakeholder and

Back 12

A stakeholder is an induvidual or group who has a vested interest in an organiasation. They can be affected by the actions of an the organisation and they all have different goal and aspiration in terms of the organisation.