Unit 3 AOS 1 Flashcards
(23 cards)
Characteristics of large-scale organisations
- employs more then 200 people
- earns revenue in the millions
- substantial assets in the millions
- board of directors
- multiple locations
LSO definition
A large scale organisation is an organisation that has more then 200 employees, has millions worth of substantial assets and earns revenue in the million. An LSO also usual operates in many locations. An example of an LSO is Toyota because they have about 344,000 employees and they are a global company.
Government department
- public sector
- responsibility lies with the relevant level of government (local, state, federal)
- to provide service to the community
- revenue from taxes, fines
Government business enterprise
- public sector
- controlled by board of directors, self-funded and manage their on operations
- government input on board
- to provide a service and make a profit
Private company
- private sector
- 1- 50 shareholders
- not listed on the stock exchange
- revenue from sales
- to provide goods and/or services in the pursuit of profit
Public company
- private sector
- may have a number of shareholders
- listed on the stock exchange
- shares can be brought and sold
- revenue from income
- to provide goods/services for a profit
Charities and foundations
- private sector
- provides assistance in form or goods/services/finances
- revenue from donations and fundraising
- to raise funds
- not-for-profit, makes profit but it’s not aimed
Vision statement
The vision statement states what the organisation aspires to become. It broadly expresses what the organisation hopes to become and what they want to achieve. An example is to be the most respected and admired company which is Toyota vision.
Mission statement
The mission statement is the organisations purpose and how it will operate. It expresses why an organisation exists. An example is Toyota’s mission which is to deliver outstanding automotive products and services to there customers, and enrich their community, partners and environment.
Objectives
A objective is a desired goals that the organisation wants to achieve. It’s the goals, outcomes and results that provides the organisation with a path to follow. Toyotas objectives are to give their customers respect and to earn a profit for continuous improvement and innovation.
Operations functions
Task of managing the process that transforms resources into finished goals and services.
Human resource function
Involves manages who are responsible for workplace tasks that relate to the employment and retention of employees
Marketing function
The process and activities which link the LSO to the consumer, including sales and advertising
Finance function
Involves the assessment and allocation of money within the LSO. This may include activities such as financial statements which assist the LSO to assess its performance using a dollar value.
Research and development function
The scientific research and technical development of new products and/or processes
Stakeholders
Stakeholders are individuals or groups that interact and have an interest in an organisation.
Most organisations main stakeholders include customers, employees, shareholders, competitors and suppliers
Positive contributions of an LSO
- significant contribution to employment
- income to spend in other businesses
- contribute to infrastructure growth
- improve GDP and balance of payments through exports, balance of Aussie dollar goes up
- contribute to research and development
Negative contributions of and LSO
- downsizing and outsourcing to overseas, unemployment
- replacing employees with technology
- cost in supplying the infrastructure, which may lead to other social programs being under-funded
- damage to the environment
- transmit profit overseas
Shareholder
A shareholder is any person who owns shares in a company. This person can be anyone from the general public. An example of a shareholder can be a person who owns multiple shares in west farmers
Internal environment
The internal environment includes factors and stakeholders inside the LSO that it has high degree f control over. Employees and managers are part of the internal environment as they are part act within the business to ensure the best performance, particularly in the areas of sales and profit.
External operating environment
The operating environment include factors and stakeholders outside the business that directly affects or interacts with the business. Example of stakeholders in the operating environment include customers, suppliers, competitors because they have a direct impact on the performance and success of the business.
External macro environment
The macro environment are broad or wider forces, conditions and trends that influence economic, legal, technological, political and social factors. Factors in the macro environment are out of the control of the LSO and may or may not affect its performance or the ruining of the business. These can include political influences, economic influences, legal influences, technological developments and social attitudes.
Performance indicators
Performance indicators are specific measures or criteria used to evaluate the success, efficiency and effectiveness of a particularly area of the organisations performance. Performance indicators may be financial such as sales and net profit figures or non-financial such as staff turnover and number of customer complaints.
Net profit- expenses minus revenue
Number of sale- higher sales lead to higher profit
Market share- % compared to competitors, increase suggest success
Rate of productivity growth- growth indicates using resources efficiently
Customer+ staff satisfaction- surveys, staff turnover, customer complaints
Level of wastage- becomes more efficient by reducing waste
Number of workplace accidents- little shows safety rate
