Business
Management
Chapter 1.7-1.10
Cameron Stow
Large Scale Organisations in
Context
• Listed on the Australian Stock Exchange (ASX) – highly
likely
• > 200 people employed
• Multiple locations for operations, headquarters and
possibly overseas based.
• Assets are substantial – refer to annual reports you have
read.
Large Scale Organisations in
Context
•
•
•
•
•
•
Ramsay Health
Woolworths
Bunnings
BHP Billiton
Billabong
Iluka
Large Scale Organisations
THE GOOD
• Contribute to Australia’s Gross Domestic Product
• Create Employment for many workers.
• Contribute to our balance of payments eg if the product
is exported. (Balance of payments is exports minus
imports)
Large Scale Organisations
THE BAD
Negative Externalities.
• Pollution
• Control the prices in the market if the organisation is large
enough.
• Outsourcing eg sweatshops
• Corporate Governance issues eg James Hardy and the
asbestos compensation matter
Large Scale Organisations
• Know the difference between an organisation that is in
the PUBLIC SECTOR and one that is in the PRIVATE
SECTOR.
• Stakeholders?????? Who are they? There has always
been an examination question that asks about these
people or organisations.
LSO Stakeholders
Types of Stakeholders in LSO’s.
STAKEHOLDERS
• Those that have an interest in an organisation.
• Those that could be affected by decisions made by the
large scale organisation.
• In the exam, bring the stakeholders into context by
looking at the example given of the large scale
organisation, its operation, location and environmental
impact.
STAKEHOLDERS
• Stowy’s abattoir Company is a • STAKEHOLDERS
LSO and wants to build a
meatworks 2km outside of
sleepy Learmonth near Ballarat.
It claims it will create 300 new
jobs and export A$500 million
per year. The company has had
several court actions for
pollution in the past.
Learmonth – Population 800
STAKEHOLDERS – Who are
They?
• Stowy’s Abattoir Company is
a LSO and wants to build a
meatworks 2km outside of
sleepy Learmonth near
Ballarat. It claims it will
create 300 new jobs and
export A$500 million per
year. The company has had
several court actions for
pollution in the past.
STAKEHOLDERS
• Learmonth
residents
• Stowy’s/holders
• Local graziers
• Local suppliers
• Trade Unions
• Managers at
Stowy’s Corp
1.8 Objectives of LSO’s
1.9 Measuring Organisational
Performance
Organisational performance can be measure based on two key
areas these being:
- Through financial indicators;
- Through efficiency and productivity.
Key Performance Indicators Financial
• A way to measure the performance of a large scale
organisation
• Profit after tax
• Sales
• Assets
• Share prices
• Market share
KPI’s – Non-Financial
•
•
•
•
•
Usually found by surveying people.
Worker satisfaction
Customer satisfaction
Workplace accidents
Greenhouse emissions
Efficiency and productivity
Efficiency and productivity
Effectiveness of LSO’s
SAC Revision
- SAC is 50 minutes and you are allowed a one page A4 cheat
sheet. Remote students can access these SACS from Mr Sarup
in Dimboola or Mr Bandel in Nhill.
- Hopetoun students will sit the SAC on Wed 22nd Feb. Nhill will
sit it on Thursday 23rd and Dimboola can be either day.
- You need to be confident that you can meet the key
knowledge and skills set out at the start of the SAC (these are
on the next slide).
- In addition to chapter one you also need to know the concept
of ethical and socially responsible management (ESM) is. You
will find more information about ESM in this powerpoint as
well as on page 48.
What is ESM
Ethical and Socially Responsible Management relates to the
moral standards and consideration for the broader community
by large-scale organisations through their activities and actions.
While all modern large-scale organisations are increasingly
confronted with this issue, it has been of particular relevance to
the Iluka company particularly in relation to road damage
caused by trucks.
In 2008, Iluka commissioned an Environment Effects Statement.
This statement states that, “the additional traffic generated by
each of the mines is estimated at around 200 trips per day (twoway) of which 40% are trips by haul trucks”.
Questions to students…
What impact did these trucks have on the broader communities
around the Wimmera/Mallee region?
How well was this impact communicated to the communities
prior to the increasing the number of trucks on the highways?
You SAC question will expect that you can explain the ESM
concept, provide an overview of a business with an ESM issue
and be able to discuss the issue and its relevance to
stakeholders.
ESM – Iluka example
How to answer this question…
Explain what an ESM is.
Iluka – describe the company. You will find information on their
website.
http://www.iluka.com/
Discuss the issue and relate it to the stake holders in the
company.
Useful resources to learn more
about iluka…
http://cameronstow.files.wordpress.com/2012/02/mbs2_ees_c
h07-9_impact-assessment1.pdf
http://www.iluka.com/
http://www.sunraysiadaily.com.au/news/local/news/general/ro
ads-dangerous-council-urged-to-seek-serious-help-to-fixhighways/2440971.aspx
http://www.milduraindependent.com/news/index.php?option=
com_content&view=article&id=3488:trucks-to-be-cut-fromhenty-highway-railway-trial-planned&catid=1:news&Itemid=2
SAC Revision
This SAC should have no surprises.
Check points for success…
YOU MUST KNOW THE KEY KNOWLEDGE
• characteristics of large-scale
organisations;
• variations in types of large-scale
organisations, their objectives and
related business
strategies;
• contributions, both positive and
negative, of large-scale
organisations to the economy;
• internal and external (operating
and macro) environments of largescale organisations;
• performance indicators used to
evaluate the performance of largescale organisations,
• identification and characteristics
of stakeholders of large-scale
organisations, including their
interests, possible conflicts and
related ethical and socially
responsible considerations.
SAC Revision
You must be able to demonstrate the key skills…
The following key skills are the focus of this task:
• accurately use relevant management terms;
• analyse business information and data;
• analyse the context in which large-scale organisations operate;
• apply knowledge and concepts to practical and/or simulated
situations.