Large-scale Organisations Business Management AOS 1: LSOs in Context

LSO’s Definition Characteristics (how to identify them) Typical management functions How to distinguish between various kinds of LSO’s (ownership, focus, activity) Mission and vision statements Environments of businesses Positive/ negative contributions of LSO’s What are stakeholders Interests and conflicts of stakeholders How they relate to environments Internal and external environment Internal, operating and macro environment Where to next: KPI’s How do we evaluate the performance of businesses What is efficiency/effective ness What are some specific indicators to assess performance Where to next: Further on LSOs The SMART way of objectives Hierarchy and types of objectives Typical management functions (more depth) LSO Economic Contributions (more depth) AREA OF STUDY 1 – LSOs In Context  ☐ ☐☐

Last week: LSO Ownership models See the Excel Table you guys made up on lesson 4’s Wiki!

Positive contribution of LSOs to the economy Provide Employment : account for about 30 % of the workforce in Australia, with Coles Myer and Woolworths. (LSOs make up only 3% of all businesses). Contribution to research and development: LSOs undertake extensive R&D, and thus produce many new products. They adopt efficient work practices and innovative management ideas as a result. This will have an impact upon the whole of Australian society, as these new products are implemented because they increase productivity. Gross Domestic Product (GDP): this is the total monetary value of goods and services produced in Australia in a 1 year period. LSOs contribute about 50%- 55% of Australia’s GDP. Contribution to exports: many LSOs export products O/S, eg Rio Tinto earns 90% of its revenue from O/S. Exporting products contributes positively to our Balance of Payment (BoP), as a favourable BoP exists when there are more payments coming in to Australia than going out Help infrastructure growth: roads, railways, ports, communication systems – all improved and this assists economic growth, eg, upgrades to Monash Freeway and Citylink estimated to deliver $14 billion in benefits through reduced travel time.

Negative contribution of LSOs to the economy Downsizing/outsourcing to overseas countries: by laying off workers in an attempt to reduce costs and stay competitive, this can increase the unemployment rate, reduce tax income for gov’t, and increase welfare payments. Environmental damage: through their activities, polluting waterways, or greenhouse gas emissions, LSOs may cause environmental damage. Price setting; powerful LSOs have the ability to set prices and control markets, especially where there are oligopolies, i.e. small number of businesses that control most of a particular market (oil companies and petrol)

Key Words you need in your Glossary for AOS 1 - Large Scale Organisation - Strategic Planning - Chain of Command - Decentralisation - Takeover - Merger - Public Sector - Private Sector - Government Business Enterprise - Corporatisation - Privatisation - Mission Statement - Vision Statement - Strategic/Tactical/Operational Objectives - Gross Domestic Product - Downsizing - Balance of Payments - Stakeholder - Business Environment - Internal Environment - Operating Environment - Macro Environment - External Environment - Trade Unions - Lobby Groups