Chapter 1

Question 0

Define an organisation

Answer 0

Two or more people working together to achieve an objective.

Question 1

What is the internal environment?

Answer 1

Includes all those things which the organisation has some degree power of

Question 2

What is a large-scale organisation ?

Answer 2

A large-scale organisation employs 299 or more people, earnes 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 internationally.

Question 4

What is a corporation?

Answer 4

A corporation is owned by shareholders and aims to make 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.

Question 7

What is an objective?

Answer 7

An objective is a desired goal, outcome or specific result that an organisation intends to achieve.

Question 8

What is vision statement?

Answer 8

A vision statement states what the organisation aspires to become.

Question 9

What is a mission statement?

Answer 9

A mission statement expresses why an organisation exists, it’s purpose and how it will operate.

Question 10

What are strategies?

Answer 10

Strategies are the actions that an organisation takes to achieve specie objectives.

Question 11

Define Gross Domestic product.

Answer 11

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

Question 12

What is the balance of payments?

Answer 12

The balance of payments is a record of a country’s trade and financial transactions with the rest of the world.

Question 13

Define research and development.

Answer 13

Research and development refers to actives undertaken to:

• Improve existing products.
• Create new products.

Question 14

Define invention.

Answer 14

An invention is the development of something new.

Question 15

Define innovation?

Answer 15

Innovation occurs when something already established is improved upon.

Question 16

What is the infrastructure?

Answer 16

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

Question 17

Explain downsizing?

Answer 17

Downsizing involves workplace staff reductions, with the elimination of jobs and positions.

Question 18

Explain outsourcing?

Answer 18

Outsourcing is the contraction of some organisational operations to the outside suppliers.

Question 19

What is the internal environment?

Answer 19

The internal environment includes all those things over which the organisation has some degree control of.

Question 20

What is the external environment?

Answer 20

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

Question 21

Define operating environment.

Answer 21

An organisations operating environment refers to outside factors with which the organisation directly interacts in the course of conducting its buisness.

Question 22

What are customers?

Answer 22

Customers are buyers or users of the products of a large-scale organisation.

Question 23

What are competitiors?

Answer 23

Competitors are other organisations that offer rival products or services.

Question 24

What are lobby groups?

Answer 24

Lobby groups are groups who attempt to directly influence or persuade an organisation to adopt particular policies.

Question 25

What is the macro environment?

Answer 25

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

Question 26

What is globalisation?

Answer 26

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 27

What is effectiveness?

Answer 27

Effectiveness is the degree to which an organisation has achieved its states objectives.

Question 28

What is efficiency?

Answer 28

Efficiency refers to how well an organisation uses resources to achieve objectivise.

Question 29

Define key performance indicators.

Answer 29

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

Question 30

What is profitabillity?

Answer 30

Profitability measures the earning performance of the organisation.

Question 31

Define number of sales as performance indicator.

Answer 31

Number of sales measures the number of products sold.

Question 32

Define the percentage of market share?

Answer 32

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

Question 33

Define the rate of productivity growth.

Answer 33

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

Question 34

Define customer survey.

Answer 34

Customer survey measures how satisfied customers are with the organisations performance.

Question 35

Define staff survey.

Answer 35

A staff survey measures how satisfied staff are within the organisation.

Question 36

Define staff turnover.

Answer 36

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

Question 37

Define customer complaints.

Answer 37

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

Question 38

Define level of wastage.

Answer 38

Level of wastage measures the amount of waste created by the production process.

Question 39

Define number of workplace accidents.

Answer 39

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

Question 40

What is benchmarking.

Answer 40

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

Question 41

What is a corporate culture?

Answer 41

Refers to the values, ideas, expectations and beliefs shared by members of the organisation.

Question 42

What is Ethical management?

Answer 42

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

Question 43

What is Social responsibility?

Answer 43

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

Question 44

What is Leadership?

Answer 44

Leading is the process of influencing or motivating people to work towards the achievement of the organisations objectives. Effective leaders typically display following qualities: interpersonal, informational and decision making.

Question 45

What are Employee relations?

Answer 45

Refers to the total interaction that occurs between an employer and the employee in regard to the establishment of conditions of employment.

Question 46

What are is Stakeholder(s)?

Answer 46

Groups or individuals who interact with the organisation and have an interests in its activities.

Question 47

Performance indicatior?

Answer 47

Specific criteria used to measure the efficiency and effectiveness of the organisations performance.

Question 48

What is a terrif?

Answer 48

In simplest terms, a tariff is a tax. It adds to the cost of imported goods and is one of several trade policies that a country can enact.