Unit 3 Area of Study 1 Business Management

Organisation
Two or more people working together to achieve an objective
Large Scale Organisation
An organisation that employs more than 200 people, has revenue in the millions and has over $200 million in assets
Multinational Corporation
Is owned and based in one country and operates in many countries around the world
Corporation
Is owned by shareholders and aims to make a profit
Shareholder
Is any person who owns shares in a company
Government Business Enterprise
Is a government owned and operated business
Not-For-Profit Organisation
Is an organisation that does not pursue profit as a goal; they engage in charitable, educational, humanitarian, or other activities, often with a social purpose
Objective
An objective is a desired goal, outcome or specific result that an organisation intends to achieve
Vision Statement
States what the organisation aspires to become
Mission Statement
Expresses why an organisation exists, its purpose and how it will operate
Strategies
Are the actions that an organisation takes to achieve specific objectives
Research and Development
Activities to improve existing products or create new products
Infrasturcture
Refers to highways, railways, airports, communication systems, education and health facilities, water, gas and electricity supplies
Downsizing
Involves workplace staff reductions, with the elimination of jobs and positions
Outsourcing
Is the contracting of some organisational operations to overseas suppliers
Internal Environment
Includes all those thing over which the organisation has some degree of control. Employees, managers, policies, culture
External Environment
Includes those things over which the business has little or no control over. Operating and Macro Environment
Operating Environment
Refers to the outside factors with which the organisation directly interacts in the course of conducting its business. Customers, Suppliers, Competitors, Interest Groups
Customers
The buyers or users of the products of large-scale organsiations
Suppliers
Are those organisations and individuals that supply resources to the organisation, allowing it to conduct its operations
Competitors
Are other organisations that offer rival products or services
Lobby Groups
Groups of people who attempt to directly influence or persuade an organisation to adopt particular policies or practices
Macro Environment
Is the broad factors in the economy and society within which the organisation operates
Globalisation
Th effect of hi-tech communications, lower transport costs and unrestricted trade turning the whole world into a single market
Effectiveness
Is the degree to which an organisation has achieved its stated objectives
Efficiency
Refers to how well an organisation uses its resources to achieve objectives
Performance Indicators
Are specific criteria used to measure the efficiency and effectiveness of the organisations performance
Profitability
Measures the earning performance of the business and indicates the business’s ability to maximise profits.
Number of Sales
Measures the number of products sold. When No of Sales increases that’s when an organisation will be satisfied.
Percentage of Market Share
Is the proportion of the total market that a business has, expressed as a percentage
Rate of Productivity Growth
Measures the change in productivity in one year compared to the previous year
Customer Satisfaction
A measure of how well a business has met its customers’ expectations
Employee Satisfaction
How pleased a member of staff is with their role and work situation. It can be affected by such factors as the nature of the work, pay level, the way work is supervised and relationships with fellow employees
Staff Turnover
Measures the number of staff who are leaving the organisation
Number of Customer Complaints
Number of customers that have used organisations services who have expressed their dissatisfaction. It can show areas of the business that need to improve.
Level of Wastage
Measures the amount of waste created by the production process.
Number of Workplace Accidents
Indicates how safe the workplace is for employees.
Benchmarking
A procedure in which an organisation compares its own performance indicators against those of successful competitors.
Stakeholder
Groups or individuals who interact with the organisation and have an interest in its activities
Social Responsibility
Is the obligation a business has over and above its legal responsibilities to the well-being of employees, community and the environment.
Ethical Management
Refers to the process of abiding by moral standards and doing the ‘right’ things in the interest of all stakeholders by being fair, honest and respectful.