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Large- scale Organisations

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

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Large- scale Organisations

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

  2. AREA OF STUDY 1 – LSOs In Context  ☐ ☐ ☐

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

  4. 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 favourableBoP 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.

  5. 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)

  6. Case Study 1: Banking Job Losses Individually complete Case Study 1 on the worksheet page (access on Wiki) When completed we will watch an interview with ANZ’s CEO discussing job losses further.

  7. Case Study 1: Banking Job Losses Questions to consider: Who does the CEO have a responsibility towards – the owners (shareholders) to make a profit, or the employees to provide them with a job? How does the CEO justify ANZ’s decision?

  8. Case Study 2: BP Oil Spill

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

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