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Copy of VCE Business Management ~ Unit 3 (SAC 1)
Transcript of Copy of VCE Business Management ~ Unit 3 (SAC 1)
Characteristics of an LSO
Research & Development
of an LSO
Types of LSOs
Objectives and Strategies
of an LSO
Contribution to the
Employs 200 or more people
Earns revenue in the millions
Has assets of more than $200 million.
1. Public Company: Owned by shareholders (anyone from the public can buy shares, 100 or more, traded on the ASX), i.e BHP billiton and Telstra.
2. Private Company: Aims to make a profit, usually family company (restrictions on who can buy shares, no more than 50 shareholders, not traded on the AXS), i.e Rip Curl and 7 eleven.
3. Government Business Enterprises (GBE): Owned and operated by the government. Carry out government policies and deliver community services. Employ a large number of people. i.e VIC roads and AUS post.
Main purpose is to provide goods, services or funds to prevent particular social problems, or to continue their work by benefiting the community.
They don't aim to make a profit, any profit that is generated goes to the benefit or to the organisation so that they can continue their work.
Rely on volunteers, subscriptions and donations.
Types of LSOs
Types of LSOs
Aim to provide essential community services, such as, health, education and welfare
Exist at all three levels of government (Federal, State and Local), i.e Department of education, employment and workplace relations, and, the department of families, housing, community services and indigenous affairs.
Is a goal that an organisation wants to achieve. It gives direction, which increases its chances of being successful.
States what the organisation aspires to become; want to wants to grow to be in the future.
Expresses why an organisation exists, its purposes and how it will operate.
Are actions that an organisation takes to achieve specif objectives.
Objective and Strategies of an LSO (Continued...)
Employ large amounts of people.
Many LSOs export their product/service into overseas markets. This creates jobs, boots income, and improves our standard of living.
Research & Development (R&D);
Refers to activities undertaken in order to innovate (improve existing products) or to invent (create new products).
Most infrastructure is supplied by LSOs. Infrastructure is highways, railways, airports, communication systems, education & health facilities, water, gas and electricity.
Contribution to the
Is when organisings lay-off workers in an attempt to reduce costs and imporve productivity.
Is when a non-core part of an organisation is transported to an external source.
Damage to the environment;
Some LSOs cause damage to the environment by contributing to pollution and green-house gas emissions. Impacts the economy by costing for repairs and to clean-up the damage.
Anything an organisation has some degree of control over and refers to conditions inside the organisation.
The organisation has little control over and refers to things it has little control over.
Business Environments (Continued...)
Suppliers and Conditions:
Refers to the outside stakeholders that the organisation comes into contact with in the course of conducting its business.
Are the reason the organisation exists because they buy and use an organisations product or service. Expect high levels of service and have become more health and environmentally conscious, which can force organisations to change their products or practices. MUST respond to the needs to customers.
Are other companies that supply resources to an organisation so that it can conduct its operations. Normally business have a number of suppliers and need to develop a good network of suppliers.
Are other organisations that offer rival products or services. Organisations need to respond to any change in their competitors actions to remain competitive.
Trade Unions -
Employees may choose to join a union.
Consumer Groups -
Monitor the organisation's performance in terms of product safety, packing, pricing and advertising.
Specific Issue Groups -
Focus on one specific area; youth unemployment, civil liberties, anti-globalisation or environmental protection.
Business Environments (Continued...)
Made-up of the broad factors in the economy and society within which the organisation operates; global, political, technology, economic, social and legal factors.
Changes in the Macro environment can affect LSOs (i.e managers making adjustments in operations).
Are groups who attempt to directly influence or persuade an organisation to adopt particular policies.
State and Federal Government policies impact organistions.
With the appropriate technology, organisations can increase efficiency and productivity, create new products and improve the qualitiy and range of products and services.
Changes in economic activity impact on the performance of all LSOs, experience good and bad times.
Customers nor spending as much, results in reduced profits.
Societies attitudes to what is right and wrong are constantly changing and this affects the ways in which LSOs operate.
Society requires LSOs to sell acceptable products, to treat staff with respect, contribute to the community and implement procedures that will preserve and protect the natural environment.
All LSOs are required to comply with the laws made by parliament and rulings set down by the courts.
Changes in legislation regarding the environment, consumer protection, OHS, industrial relations and trade practices will all have impacts on the conduct of LSOs.
Means that organisations now operate in a world-wide market.
This is due to better technology, transportation services and unrestricted trade and means that the whole world has become a single market.
Key Performance Indicators (KPIs):
Profitability (Financial KPI):
Number of sales
Percentage of market share (Financial KPI):
Rate of productivity Growth
Measure efficiency (how well resources are used) and effectiveness (the degree of how well an objective is achieved) of the organisation.
Has financial and non-finacial KPIs.
Measures the earning performance of the organisation and indicates its capacity to use its resources to maximise profits.
Measures the number of products sold and helps an organisation evaluate its performance in marketing strategies.
The percentage of a market that a business has, compared to competitors.
Calculated by; the organisation's sales in that market DIVIDED by the total number of sales of all organisations in that market MULTIPLIED by 100.
Measures the change in productivity in one year compared to the previous year.
Customer Satisfaction & Complaints
Customer satisfaction and complaints both indicate the degree to which an organisation's performance meets a customer's expectations. A highly satisfied customer will remain loyal to the organisation.
Customer and Staff Survey
A customer and staff survey measure how satisfied or dissatisfied customers/staff are with/within the organisation.
Level of wastage
Measures the amount of waste created by the production process.
Number of work-place accidents
Indicates how safe the workplace is for employees. Staff who feel unsafe may not be motivated to perform to the best of their ability. Accidents can stop production.
Benchmarking (Non-Financial KPI):
Occurs when an organisation measures its performance against that of other leading organisations that are known for their excellence. It allows for a comparison to be made for a more accurate evaluation.
Staff Turnover -
Measures the number of staff who are leaving the organisation.
Stakeholders of an LSO
A Stake holder refers to the people and groups who interact with the organisation and have an interest in its activities.
Any person who owns shares in a company, they are partial owners and want the organisation to be profitable so that they can receive dividends (portion of profits).
Has the responsibility of running a profitable or successful organisation.
There are many issues that managers encounter, i.e. Introducing a new policy.
They need to try and satisfy as many stakeholders as possible!
Represents employees in many wokplaces in Australia. It works to prevent anything that diminishes employee tights, safety or conditions - defends employee rights.
Are vital to an organisation because they provide the skills required to manufacture or produce the product the organisation sells.
The quality of the product depends on their level of skill and commitment.
All employees need to be treated fairly.
Expect to purchase quality products at reasonable prices and high levels of service.
Provide raw materials that will be used in the production process. It's essential for organisations to develop a good working relationship with suppliers to ensure timely delivery and quality materials.
Expect organisations to show concern for the environment, waste disposal and their own future welfare through their own employment in the organisation.
Conflict, ethics and social responsibility:
Society expects organisations to accept social responsibility and practice ethical management when it comes to the interests of all stakeholders.
Social Responsibility -
It's the obligations a business has over and above its legal responsibilities to the well being of employees, customers, shareholders, the community and the environment.
Ethical Management -
Refers to the process of abiding by moral standards and principles in the interests of all stakeholders.