Business Management Vce Notes

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UNITS 3 AND 4 BUSINESS MANAGEMENT SUMMARY

UNIT 3
AOS1 – LARGE SCALE ORGANISATIONS IN CONTEXT
LARGE SCALE ORANGISATIONS
-An organisation is an entity enabling groups of people to work in a planned and coordinate way to achieve a common goal or objective Classifying LSO's *Number of employee's exceeds 200 (according to the ABS) *Revenue (gross income) is in the millions of dollars *Total assets or market capitalisation (no. of shares x share value) is over $200 million *Profit after tax is still in the millions *Extent of operations (multinational or transnational) *Management structure (there must be a clear distinction between the owners and managers)

Types of LSO's -Can hail from either the public or private sector -The private sector refers to part of the economy controlled by private individuals or groups of individuals not affiliated with the government. They consist of:

Companies/Corporations -Aim to make a profit or add value to net assets through manufacture or provision of services -Can be categorised as either public or private organisations -Private companies cannot be bought on the stock-market, e.g. Mars, Bosch, IKEA -Public companies register their securities to be sold to the general public through the stock exchange such as the ASX, members of the public are owners such as Coca-Cola, Blockbuster, McDonalds

Charities and Foundations (AKA NGO's) -Aim to provide goods or services for the alleviation of a social problem or for the benefit of the community -Funds are often generated by promoting a public profile -E.g. Caritas, Oxfam, World Vision

The public sector is the part of the economy controlled by the local, state and federal governments. It can be categorised into: Government Departments Government-Business-Enterprises -Aim to provide a high level of service within a specified field, can exist at all 3 levels of government -Also aim to achieve social and political objectives of the government -Operate within limits of their budget and relevant legislation -E.g. Health and Ageing, Education, etc. -Government owned organisations that are often self funded -Aim to provide a service whilst also pursuing own profits -E.g. Australia Post, Medibank Private -Often corporatised (process of public-sector organisation operating as if they were part of the private sector hence primarily aiming to make a profit)

Public Private Partnership (PPP's) Government services or private business ventures funded and operated by a partnership agreement between the government and one or more private sector companies. Involves a collaboration and benefits for both as the government avoids having to borrow money for the project whilst the company is rewarded with benefits such as tax breaks and road-toll revenue. Example's of PPP's include the construction of Southern Cross Station and City Link. *Privatisation is the process of an organisation changing from the public to private sectors

ECONOMIC CONTRIBUTIONS OF LSO'S
Benefits of LSO's For themselves Economies of scale Mass production and bulk buying lower cost of unit per output, therefore outputs can retail at a lower price Financial Benefits Becoming an LSO allows more capital to be available, thus potential for growth Specialisation Large-scale operation's allow the organisations to specialise into fewer services, possible allowing an increase in efficiency For Society Provide employment Directly offer jobs within them, or indirectly to customers and suppliers Develop industrial base and stimulate infrastructure growth LSO's have the capital and expertise in addition to government support to perform large-scale projects, their requirements such as transport, water, gas technology Earn export income Particularly with secondary products, allows more money to enter/circulate within a country, strengthens or stabilises trade account if there is a surplus or deficit Increase the standard of living Through the provision of a wide range of products and...
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