Year 12 Business Management

1. Year 12 Business Management Chapter One - LSOs Year 12 Bus Man chapter one

2. Unique nature of LSOs An organisation; Has a formal or structured arrangement Has two or more people Has a specific goal or purpose Takes resources and transforms them into a good or service. Organisations can achieve things that cannot be achieved by individuals. Year 12 Bus Man chapter one

3. Characteristics of LSOs There is no formal definition and LSOs do not have to have all of these characteristics. • More than 200 employees • Substantial assets (eg often more than $200m) • Substantial revenue or sales • Substantial profit • Often listed on the Stock Exchange (public company) • Large percentage or proportion of market share. • Size of operations (although can be single, multiple factories, branches etc) • Number of business locations – often national or multinational Year 12 Bus Man chapter one

4. Important Concepts re LSOs Multinational/transnational corporations Takeover Merger Diversification Year 12 Bus Man chapter one

5. Different types of LSOs Ownership Public sector – government owned sector of the economy. Public service which consists of government depts. Examples; Victoria Police, Department of Health. GBEs – corporatisation; run on business lines & usually profitable. Examples include; ATO, VCAA, Vicroads & Australia Post. Privatisation – process of moving from the public sector to the private sector. Can be done through; • Share float – selling shares. • Public tender • Public private partnerships eg. building schools & hospitals. Examples include; Telstra, Metro Trains, Commonwealth Bank & Qantas. Year 12 Bus Man chapter one

6. Private sector – owned by individuals and groups. Public companies – listed on the Stock Exchange eg. Woolworths, BHP Billiton & Wesfarmers. Private companies – have ‘Pty Ltd’ after their name. Cannot buy shares in these companies unless invited. Eg. Ripcurl & Visy. Year 12 Bus Man chapter one

7. Focus • Profit – private sector companies. • Not for profit – charities, foundations, trusts. Goals and foci is community & service based. Usually they are LSOs. Year 12 Bus Man chapter one

8. Organisational objectives & strategies Mission Statement • Who we are • What we do • Where we are going Eg. BHP Billiton ‘Our purpose is to create long term value through the discovery, development and conversion of natural resources, and the provision of innovative customer and market-focused solutions.’ Vision Statement Philosophical statement of the values and what the organisation wishes to become. EG DEECD (Education Dept) ‘Every young Victorian thrives, learns and grows to enjoy a productive, rewarding and fulfilling life, while contributing to their local & global communities.’ Year 12 Bus Man chapter one

9. Organisational Objectives Can be; • Strategic • Tactical • Operational Objectives of goals must be; S M A R T Year 12 Bus Man chapter one

10. Typical Management Functions LSOs typically manage; Operations (OM, production) Finance Human Resources (employees) Marketing (advertising & promotion of products and services). Research & development (innovation) Year 12 Bus Man chapter one

11. Contributions of LSOs • GDP • Employment • Balance of Payments (trade) • Research & innovation • Infrastructure growth Contributions can be both positive & negative. Eg. Year 12 Bus Man chapter one