Business Management Unit 3 Aos1

Front 1

Characteristic of LSO: People

Back 1

An organisation that employs over 200 people is determined to be large scale. This includes all members of an organisation across separate divisions and locations. LSO's require large amounts of employees to oversee their operations

Hint 1

-200 people

-all members

-oversee operations

Front 2

Characteristic: Revenue

Back 2

A large scale organisation retains revenue in the millions of dollars. Revenue refers to the amount of income earned by an organisation. LSO's generally maintain a large market share and therefore earn a large profit from its customers.

Hint 2

-millions of dollars

-amount of income

-large market share

Front 3

Characteristic: Total assets

Back 3

The total assets of a large scale organisation should total over $200 million. These assets include machinery, equipment, stock, materials, locations and property. LSO's require a substantial amount of assets to maintain their production and operations.

Hint 3

-200 milllion

-different assets

Front 4

Types of LSOs: Government business enterprise

Back 4

A Government business enterprise (GBE) is owned and operated by the government however aims to make profit whilst providing an essetnial service to the community. It operates within the public sector. An example of this is Auspost.

Hint 4

-government

-service & profit

-public sector

Front 5

Types of LSOs: Government Department

Back 5

A government department is owned and operated solely by the Government and they provide essential community services free of charge to citizens. The taxpayers provide funding for its operations as they operate within the public sector. Their main objective is to provide a service and not seeking to make a profit. An example of this is the department of Education.

Hint 5

-government

-provide service/without profit

-public sector

Front 6

Types of LSOs: Private company

Back 6

A private company operates within the private sector. It cannot be owned by no more than 50 shareholders who have to seek permission to sell their shares by other shareholders. Shares cannot be purchased or traded on the Australia Stock exchange. An example of this is 7eleven.

Hint 6

-50 shareholders

-Not on ASX

-Private sector

Front 7

Types of LSOs: Public Company

Back 7

A Public company operates within the private sector. They do not have a limit on the amount of shareholders they possess, and the shares can be freely traded on the Australian Stock exchange. It is also a requirement for these types of organisations to publish their financial reports. Examples of this Woolworths or Telstra.

Hint 7

-Unlimited shareholders

-On ASX

-Private sector

Front 8

Types of LSOs: Not for Profit Organisation

Back 8

A not for profit organisation is an organisation that operates within the private sector. It focuses on achieving social objectives rather than financial objectives. While this organisation provides goods and services to prevent social problems they also must make a profit to maintain their operations. Examples of this is Salvation Army.

Hint 8

-Private sector

-Social objectives

-Improve social problems

Front 9

Operations Management function

Back 9

This function is designed to oversee the process of converting inputs into outputs. It ensures that the operations of the business are efficient so that they are using as few resources as possible to create as much output as possible.

Hint 9

-inputs into outputs

-less resources more outputs

Front 10

Finance management function

Back 10

This is the functional area that is responsible for managing money and preparing the budgets of the organisation. The purpose is to ensure the businesses transactions are recorded accurately, and that the relevant information is passed onto management

Hint 10

-manage money

-prepare budget

-record & report

Front 11

Human Resource management function

Back 11

Refers to the functional area that is responsible for managing employees of the org. This often includes dealing with hiring, training, promotion and pay rises

Hint 11

-employees

Front 12

Research and development management function

Back 12

Is the functional area responsible for improving the current goods/services of the organisation and developing new lines that can be produced and sold by the organisation. The purpose of this is to investigate the business activities in order to make a new discovery or improve something about the org.

Hint 12

-innovation or invention

Front 13

Marketing management function

Back 13

Refers to the functional area that is responsible for selling the goods and/or services to the consumers. The purpose is to study the market that the business is in and ensure they are meeting the needs of the customers, as well as monitoring the competition

Hint 13

-study the market

-monitor the competition

Front 14

Unique nature of LSO

Back 14

- Separation of ownership and control

- Political influences

- Economic influences

- Easy access to finance/ technology

Front 15

Objective

Back 15

refers to a desired goal, outcome or specificresult that an organisation intends to achieve. Large-scale organisationsset objectives so as they are able gradually improve their performance and havea benchmark to work towards.

Front 16

SMART principle

Back 16

For an objective to be effective it shouldmeet several criteria specifically following the SMART principle. The SMARTprinciple refers to ensuring that objectives are specific, measurable,attainable, realistic and time-bound.

Front 17

Strategies

Back 17

refer to the steps that an organisation is goingto undertake in an attempt to achieve this objective. It is the outline of whatthe organisation is doing to achieve the specific objective.

Front 18

Mission statement

Back 18

expresses why an organisation exists,its purpose and how it will operate.

Front 19

Vision Statement

Back 19

outlines what the organisation aspires to become.

Front 20

Values Statement

Back 20

outlines what is the most important tothe organisation in terms of values and ethics.

Front 21

Positive contribution to economy

Back 21

- employment

- Exports

- Infrastructure

Front 22

Negative contribution to economy

Back 22

- Downsizing

- Outsourcing

- Environmental damage

Front 23

Key performance indicators

Back 23

refer to specific criteria used to measurethe efficiency and effectiveness of the organisation’s performance in achievingtheir stated objectives.

Front 24

efficiency and effectiveness

Back 24

Efficiency refers to how well an organisation usesits resources to achieve its objectives, whereas Effectiveness is an organisations ability to formulate and toachieve the right sort of outcomes. It is the degree to which an organisationhas achieved its stated objectives.

Front 25

KPI: Percentage of market share

Back 25

This indicator istypically used in the Finance Management Function and refers to the proportion of the market share that a business has.It is calculated by dividing the organisations’ sales by the total sales of allorganisations in the same market, expressed as a percentage.

Front 26

KPI: Net profit figures

Back 26

This is KPI is used most frequently in the Finance Management Function. Itmeasures the earning performance of an organisation.

Front 27

KPI: Level of wastage

Back 27

This is involved in the Operations Function and can include the waste or failure to use raw materials, water,energy, time, labor and gas efficiently.TheRate of Productivity: Productivity refers to the measure of efficiency

Front 28

KPI: Number of customer complaints

Back 28

An indicator usually associated with the Marketing Management Function and refers to the amount of customers who have reported to theorganisation that they are unhappy with the goods and/or services provided.

Front 29

KPI: Results of customer satisfaction survey

Back 29

This involves aset of consistent questions being posed to customers about whether they arehappy with the standard that the organisation is performing at and whethertheir needs are being meet. This is usually linked to the Marketing Function.

Front 30

KPI: Results of staff satisfaction survey

Back 30

A set of constantquestion posed to staff, which allows them to express their feelings andopinions of working for the organisation. This is used within the Human Resources Function.

Front 31

KPI: Level of staff turnover

Back 31

This is a Human Resources ManagementFunction indicator that refers to the rate at whichstaff leave and are replaced within an organisation.

Front 32

Internal environments

Back 32

The InternalEnvironment includes all those aspects of which the organisation hascontrol over. Examples of these aspects may include:

- employees

- management structure

- corporate culture/policies

Front 33

External environments (operating)

Back 33

The Operating Environment also known the task environment refers to the outside factorswith which the organisation directly interacts in the course of conducting itsbusiness. It has a limited and small degree of control over these factors.These include customers, suppliers and creditors, competitors and interest andlobby groups.

Front 34

External environment (macro)

Back 34

The Macro Environmentis made up of broad factors in the economy and society within which theorganisation operates. LSOs have no control over these factors and they caneffect multiple organisations.

- technological developments

- legal influences

- political influences

- economic influences

Front 35

Stakeholders

Back 35

Refer to the individuals or groups who have avested interest in the activities of the organisation.Types of StakeholdersThe different types of Stakeholders include:• Shareholders• Managers• Employees• Customers• Suppliers

Front 36

Ethics

Back 36

Refers to the applications of moral standards to management behavior.

Front 37

Social responsibility

Back 37

Is the obligations a business has over andabove its legal responsibilities to the wellbeing of employees and customers, shareholders and the community as well as the environment.

Front 38

Positive contribution: Employment

Back 38

LSO's employ a large number of people, and although they only make up a small percentage of the total number of businesses in Aus, they contribute nearly 30% of the jobs in our workplace. This benefits of the economy because in a climate where more people are employed, they feel safe spending money and therefore the amount of money circulating the economy increases

Front 39

Positive contribution: Exports

Back 39

LSO's export significant volumes of products overseas, which improves Australias balance of payments. The Balance of payment refers to our level of importance measured against our level of exports. Exporting high levels of goods and services means that we can purchase more imports. Hence, LSO's exporting significant volumes of products overseas helps to improve our balance of payments, improving our ability to purchase imports, which in turn has a positive impact on the economy as a whole

Front 40

Positive contribution: Infrastructure

Back 40

Infrastructure such as roads and railways are created and used by LSOS (usually with government help or funding) and other businesses and people can then use these. This increases the easy of transport for other companies, decreasing their travel times and increasing their profits, in turn helping to stimulate the economy.

Front 41

Negative contribution: Downsizing

Back 41

LSO's sometimes attract criticism when they lay off workers in an attempt to reduce costs. Although this helps them to become more competitive, it sharply decreases the level of employment in the country, the negative effect of which is that there is a reduction of the amount of disposable income circulating the economy.

Front 42

Negative contribution: Outsourcing

Back 42

This is the contracting of some organisation operations to outside suppliers- often overseas- which results in the loss of local jobs, decreasing employment and therefore less money circulating the economy (e.g. Toyota)

Front 43

Negative contribution: Environmental damage

Back 43

Sometimes LSO's come under fire for making poor choices in relation to the environment, like choosing a certain method of waste disposal which causes damage to the environment and thus can have an impact on the economy through increase tourism. An example of this is the BP oil spill in the Gulf of Mexico, which caused widespread damage to the environment and also to the tourism industry.