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Business Management > UNIT 3 AOS 1 > Flashcards

UNIT 3 AOS 1 Flashcards

1
Q

Organisation

A

Two or more people working together to achieve an objective

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2
Q

LSO

A

An organisation that employs over 200 people, earns revenue in the millions, or has assets of more than $200million

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3
Q

Multinational Corporation

A

Owned and based in one country and operates in many other countries throughout the world

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4
Q

Characteristics of an LSO

A
  • Revenue in the millions
  • Employs over 200 people
  • Assets over $200million
  • Operates in multiple locations
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5
Q

Corporation

A

Owned by Shareholders and aims to make profit

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6
Q

Shareholders

A

Any person who has shares (unit of ownership) in the company

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7
Q

Government Business Enterprise

A

GBE EG. AusPost and VicRoads
Government owned corporations usually controlled by a board of directors with Government input on the Board. Often self-funded and manage their own operations. Revenue is primarily from the user-pays service the GBE provides. Its objective is to provide a service and make a profit.

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8
Q

Government Department

A

ATO and Centrelink
Responsibility to the department lies with the relevant level of government. Revenue is sourced from taxes and its objectives is to provide a service to the community.

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9
Q

The Public Sector

A

Government Owned

  • Government Departments
  • Government Business Enterprise
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10
Q

The Private Sector

A
  • Private Company
  • Public Company
  • Charities and Foundations (Not For Profit)
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11
Q

Private Company

A

Ripcurl and Fernwood Fitness Centres
1-50 Shareholders, not listed on the ASX stock exchange
The sale of shares must be with the consent of the other shareholders. Name will be followed by PTY.LTD, Revenue is from income (revenue from the sales of goods and services provided by the organisation). Objective is to proved goods and/or services in the pursuit of profit.

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12
Q

Public Company

A

Westpac and Woolworths
May have a number of shareholders and are listed on the stock exchange. Shares can be brought and sold by the company. Revenue from the sale of goods/services they provide. Objective is to provide goods and/or services in the pursuit of profit.

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13
Q

Charities and Foundations (NFP)

A

Red Cross and Salvos
Charity: Provides assistance in the form of goods and services or finances to disadvantaged or marginalised groups in society
Foundation: Organised to raise awareness and funds to support a certain cause e.g Fred Hollows
Revenue is from fundraising and donations. Objective is to raise funds to be used to provide services for the needy or to support a particular cause

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14
Q

Management Functions

A

-Operations
-Human Resource
-Finance
-Marketing
Research and Development

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15
Q

Operations Function

A

To oversea the operations that produce the product. The layout of the plant is crucial to optimise ability to locate the workers and ensure the workers safety. Stock control is also imperative. The use of machinery and technology is monitored. Record keeping is immensely important

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16
Q

Human Resource Function

A

To ensure the health, welfare and safety of all employees, Their duties range from recruitment, training, compensation, the Union and the welfare of employees. Human Resource officers help supervisors and Managers deal with employee data and new paperwork

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17
Q

Marketing Function

A

To provide Marketing for the companies product or services. Jobs range from enhancing products, promoting products, online sales and promotion. Four important aspects for marketing are; product, price, promotion and placement. Marketers create plans so producers can apply and sell more.

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18
Q

Finance Function

A

To provide budgets and support to the businesses monetary value. Providing and analysing financial data from the company. Record keeping is crucial and fundamental to control the financial aspects of the company. A crucial part of finances role is budgeting and forecasting.

19
Q

Research and Development Function

A

The scientific research and the technical development of new products and/or processes.

20
Q

Positive Contributions LSOs have to the Economy

A

-Contribution to economic growth
LSOs produce large quantities of a wide range of Goods and Services
-Contribution to employment
LSO’s employ a large number of workers. LSO’s provide jobs to 2.9 million people or 29% of the private sector workforce
-Contribution to exports
LSO’s export their products to overseas markets. Exporting products overseas contributes to Australia’s balance of payments
-Contribution to research and development
LSO’s have the size ability to undertake extensive research and development. LSOs have assisted in developing new products
-Contribution to infrastructure growth
LSO’s require the use of crucial infrastructure in order to function therefore they supply these services/

21
Q

Negative Contributions LSOs have on the Economy

A

-Downsizing
Reduction of staff and elimination of jobs
-Outsourcing
Local jobs losses by transferring production to other cheaper countries
-Damage to the environment
Human activities that impact such as manufacturing, greenhouse gas and power generation.

22
Q

Performance Indicators

A
  • Net Profit Figures
  • Percentage of Market Share
  • Rate of Productivity Growth
  • Number of Sales
  • Results of staff/customer satisfaction survey
  • Staff Turnover
  • Level of Wastage
  • Customer Complaints
  • Workpace accidents
23
Q

Net Profit Figures

A

The remaining funds when expenses such as tax are deducted. The revenue left over is the LSOs net profit for that financial statement. Investors will study the amount of net profit an organisation has closely as it is a source of dividends t be distributed to shareholders.

24
Q

Percentage of Market Share

A

The proportion a LSO holds of the market as a whole, expressed as a percentage. LSO’s calculate this percentage by dividing the business’ sales and the total sales of all organisations of that market

25
Q

Rate of Productivity Growth

A

Productivity distinguishes the similarities between the amount of output produced and the amount of inputs put into production. The rate of productivity is the compare and contrast of current year and previous year. Growth indicates efficient use of resources

26
Q

Number of Sales

A

Evaluating the amount of products sold. Assuming a strategy would lead to high profits long term even if it means low profit due to marketing costs

27
Q

Results of staff/customer satisfaction survey

A

Surveys evaluate how pleased customers or staff are with the organisation. Organisations attempt to exceed expectations and can alter their strategies to best work for the customers/staff

28
Q

Staff Turnover

A

Staff Turnover indicates the amount of staff who are leaving the LSO. It is also used as a measure of satisfaction amongst staff and if worker conditions need altering

29
Q

Level of Wastage

A

Indicates the amount of waste created by the LSOs production process. This indicates if resources are being used and managed efficiently. Reductions in waste cut costs for Organisations and cuts resource wastage in ordering.

30
Q

Customer Complaints

A

Indicate when customers have been unsatisfied within their experience of the organisation. LSOs who receive small amounts of complaints develop the theory; one customer complaining there are 7 others satisfied.

31
Q

Workplace Accidents

A

The amount of accidents occurring in the workplace indicates how safe the working environment is for staff. Accident can put a halt in production and leave other staff nervous and less motivated.

32
Q

Internal Environment

A

Identified as the conditions within the organisation that could positively or negatively alter the performance of said organisation. The performance relates to the management, employees, policies and processes used by the company/organisation

33
Q

External Operating Environment

A

Relates to the outside factors that communicates directly the organisation business conduct to stakeholders

34
Q

External Macro Environment

A

Consists of varying social and economic factors of which the organisation operates along.

35
Q

Performance Indicators

A

Used to evaluate or measure the success of an LSO. They are important as they indicate how efficiently an organisation is using its resources or how effectively it is meeting the objectives set.

36
Q

Objectives

A

Goals or targets that the organisation is striving to achieve objectives provide focus for future success and clear direction for all employees and management to follow.

37
Q

Strategies

A

Actions to achieve the objectives of an LSO, ultimately leading to success. Strategies provide methods that management and employees can follow to focus on a clear direction.

38
Q

Vision Statement

A

Illustrates to consumers and the public what the LSO hopes to achieve through their manufacturing and selling of their good and services. It never mentions what the LSO does but what they hope to do in the future progression of their company

39
Q

Mission Statement

A

Illustrates what the LSO is their to provide. In the Mission statement, the clear purpose of the company is identified and is easily accessible usually from the LSO webpage. Mission statements usually relate to customers and/or employees directly.

40
Q

Stakeholders

A

Individuals or Groups that have a sound interest in the organisation (LSO). Stakeholders interact with the organisation and care about its activities. An example of a Stakeholder is a customer as they purchase the goods and/or services offered by the LSO looking for high quality and affordability.

41
Q

Stakeholders and their interest

A

-Management
Management want to make a profit, keep employees happy and make production as cheap as possible
-Unions
Unions want to keep members satisfied, keep people safe and keep people as members
-Customers
Customers want to buy affordable and high quality products
-Suppliers
Suppliers want to make a profit for their raw materials, ongoing business and good selling relationships

42
Q

Social Responsibility

A

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

43
Q

Ethical Management

A

Refers to the process of abiding by moral standards and doing the ‘right’ thing in the interests of stakeholders

44
Q

Unique nature of LSOs

A
  • Operates in many countries
  • Shareholders
  • Management structures
  • Departments
  • Political Influence
  • Long term planning
  • Cheap productions

Business Management (5 decks)

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