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

2. 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

3. 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

4. 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.

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

6. 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.

7. 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

8. 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

9. 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

10. 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.

11. 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.