Maroondah Education Coalition Revision Sessions Business Management Miss Pate & Mrs Lange – Melba College

Unit Three – Corporate Management Area of Study One – Large-Scale Organisations in Context Area of Study Two – The Internal Environment of a Large-Scale Organisation Area of Study Three – The Operations Management Function

1. Large-scale Organisations in Context Area of Study One asks us to “discuss and analyse the context in which large-scale organisations operate. Area of Study One is really important as it lays a platform for the remainder of the course. There is nothing in AoS 1 that is not revisited elsewhere in the course The key concepts introduced in this area of study are: What is an organisation (context)? What are the characteristics of an organisation? Types of LSOs, their different objectives and strategies Management functions Contributions to the economy Internal & external environments Performance indicators Stakeholders

1. Large-scale Organisations in Context What is the CONTEXT of a Large-scale Organisation? We interact with organisations in every part of our lives, in our day to day activities and in our business or work life. Organisations are a structured arrangement of people working to achieve a specific purpose or set of goals. Organisations enable us to achieve more through a team environment. The context of LSOs refers to the situations in which they operate that are different from small or small-to-medium enterprises. They have significant impact on government and the economy They produce goods and services in bulk, often at low cost They have enormous financial resources Owners are quite separate from the operations of the organisation They must attempt to satisfy a variety of interests.

1. Large-scale Organisations in Context Source: Unit 3 & 4 Business Management - Jacaranda

1. Large-scale Organisations in Context What are the CHARACTERISTICS of an LSO? This section is asking us to think about the ways we can identify an LSO – those features that make it obvious the organisation is large. Common criteria for classifying an organisation as large are: number of employees (more than 200) substantial total assets substantial total revenue substantial profits dominant market share large-sized operations business locations – generally multiple.

1. Large-scale Organisations in Context As well as size there are other ways to differentiate between organisations. One of these is the type of ownership Typical forms of ownership are: Public Sector: Government Departments Government Business Enterprises Statutory Authorities Private Sector Charities and Foundations Public Companies Private Companies

1. Large-scale Organisations in Context Private Sector - That part of the economy operated by private individuals and companies Public Companies (Ltd) Separate legal entity Listed on the ASX, shares available to general public Wesfarmers, Rio Tinto, bhpBilliton To make a profit, and increase dividends to shareholders, or to add to their net worth through the sale of goods/services Private Companies (Pty Ltd) Ownership is limited to 50 shareholders and not available to the public Victa Lawncare Pty Ltd Target Australia Pty Ltd Charities & Foundations (NFP) Organisations that exist to use resources to raise funds for a specific function Australian Red Cross The Salvation Army World Vision To provide goods, services or funds for the alleviation of an identified social problem or the community in general

Public Sector – The part of the economy that is operated by government 1. Large-scale Organisations in Context Public Sector – The part of the economy that is operated by government Type Explanation Examples Typical Objectives Government Departments Exist at all levels of government to provide services to the community State – Dept of Education and Early Childhood Development Federal – Dept of Defence, Dept of Foreign Affairs To provide a high level of service within a specialised field Government Business Enterprises (GBEs) Owned and operated by government, activities are overseen by govt depts. Exist at all levels of govt to provide service to the community while operating profitably State – Vic Forest (Dept of Sustainability and Environment) Federal - Australia Post (Dept of Communication, Broadband and the Digital Economy) To provide a high level of service within a specialised field, while operating profitably

1. Large-scale Organisations in Context Other ways to differentiate between organisations include the focus of the organisational objectives and the activities undertaken to achieve those objectives (strategies). Objectives are statements of desired achievements that provide direction for actions. Objectives must be SMART. Specific Measurable Achievable Relevant Time-bound Objectives can be: Financial Service Social Environmental All organisations must establish a purpose or reason for existence – this is expressed in the organisations Mission Statement. A mission statement is often accompanied by a Vision Statement – that outlines the general goals for the future of the organisation.

1. Large-scale Organisations in Context Typical management FUNCTIONS in an LSO A function is defined as an area of managerial responsibility to which resources are allocated and that perform a particular task (or function) for the organisation. Typical examples include: operations finance human resources marketing research & development We see later in the course that management uses a range of roles (POLC), styles and skills to coordinate these areas within an organisation.