Chapter One - Large Scale Organisations in Context - DEFINITIONS

Question 1

What is an organisation?

Answer 1

An organisation is two or more people working together to achieve an objective

Question 2

What is a large-scale organisation?

Answer 2

A large scale organisation employs 200 or more people, earns revenue in the millions, or has assets of more than $200 million.

Question 3

What is a multinational corporation?

Answer 3

A multinational corporation is owned and based in one country and operates in many countries throughout the world. eg. ANZ bank is owned and based in Australia, but operates in more than 32 countries.

Question 4

What is a corporation?

Answer 4

A corporation is owned by shareholders and aims to make a profit.

Question 5

What is a shareholder?

Answer 5

A shareholder is any person who owns shares in a company.

Question 6

What is a government business enterprise?

Answer 6

A government business enterprise is government owned and operated eg. Australia Post, Medibank and VicRoads

Question 7

What is an invention?

Answer 7

An invention is the development of something new

Question 8

What is innovation?

Answer 8

Innovation occurs when something already established is improved upon

Question 9

What is infrastructure?

Answer 9

Infrastructure refers to highways, railways, airports, communications systems, education and health facilities, water, gas and electricity supplies.

Question 10

What is globalisation?

Answer 10

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, producingq a more integrated global economic system.

Question 11

What is a not-for-profit organisation?

Answer 11

An organisation who’s main purpose is to provide goods, services or funds to prevent particular social problems or to continue their work for the benefit of the community. eg. The Salvation Army

Question 12

What is Gross domestic product?

Answer 12

Gross domestic product refers to the total monetary value of all goods and services produced in a country over one year.

Question 13

What are exports?

Answer 13

Exports are when an organisation exports their goods or services to overseas markets

Question 14

What is a board of directors?

Answer 14

A group of individuals that act as representatives of the shareholders to to make decisions on major company issues.

Question 15

What is a managing director?

Answer 15

The most senior corporate officer, executive, or administrator in charge of managing a an organisation.

Question 16

What is a government department?

Answer 16

Government Departments exist at all 3 levels of government (federal,state,and local). They provide essential community services

Question 17

What are imports?

Answer 17

A good or service brought into one country from another.

Question 18

What is conflict of interest?

Answer 18

When a person takes advantage of a situation or piece of information for his or her own gain rather than for the employee’s interests.

Question 19

What are unions?

Answer 19

They attempt to negotiate favourable pay and work conditions on the employee’s’ behalf.

Question 20

What are public companies?

Answer 20

Listed on the Australian Securities Exchange (ASX) and can have millions of shareholders

Question 21

what are private companies?

Answer 21

not listed on the ASX (australian securities exchange) and have restrictions on who can buy shares

Question 22

what is a government business enterprise?

Answer 22

A GBE is government owned and operated, carry out government policies while deliver community services.

Question 23

what is the internal environment?

Answer 23

includes all those things over which the organisation has some degree of control

Question 24

what is the external environment?

Answer 24

includes all those things over which the business has little control. It may be divided into an operating and macro environment

Question 25

what are performance indicators?

Answer 25

measure the effectiveness and efficiency of an organisations performance

Question 26

what is ethical management?

Answer 26

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

Question 27

what is social responsibility?

Answer 27

is the obligations a business has over and above its legal responsibilities to the wellbeing of employees, customers, shareholders, the community and the environment

Question 28

what are management functions?

Answer 28

LSO’s typically use management functions to implement different strategies to support the organisation in achieving it’s objectives

Question 29

what are stakeholders?

Answer 29

groups and individuals who have a vested interest in the activities of a business

Question 30

What are shareholders?

Answer 30

People who purchase shares in a company so they are partial owners

Question 31

What are unions?

Answer 31

represent employees in many workplaces, work to prevent anything that diminishes employee rights, safety or conditions

Question 32

What are employees?

Answer 32

Vital to the organisation as they produce or manufacture the goods/services, the quality of the product depends on their skills and commitment to work

Question 33

What are customers?

Answer 33

People who purchase goods or services from a business.

Question 34

What are suppliers?

Answer 34

provide raw materials that will be used in the organisations production processes.

Question 35

What is exporting?

Answer 35

Exports are when an organisation exports their goods or services to overseas markets

Question 36

What is outsourcing?

Answer 36

transferring a function of an organisation to external organisations to reduce costs

Question 37

What are conflicts of stakeholders?

Answer 37

satisfying one stakeholder will most likely result in other stakeholders being dissatisfied.

Question 38

What is number of sales and how can it measure a businesses performance?

Answer 38

number of sales measures the number of products sold. if number of products sold increases it is assumed profits will increase in the long term

Question 39

what is percentage of market share and how can it measure a businesses performance?

Answer 39

proportion of the total market that a bus has, expressed as a percentage. increase in market share suggests the organisation is performing successfully

Question 40

what is a customer satisfaction survey and how can the results measure a businesses performance?

Answer 40

measures how satisfied customers are with the organisations performance. a highly satisfied customer will remain loyal to organisation and make repeat purchases

Question 41

what is level of staff turnover and how can it measure performance?

Answer 41

staff turnover measures the number of staff who are leaving the organisation. decreased staff turnover suggests less employees are leaving because they are satisfied with working conditions