Download LSO Economic Contributions

Do now:
• Take out homework (sheet regarding vision and
mission statements)
Learning Intentions
Students will be able to:
• Define the concept of vision & mission
statements
• Describe how they link with the development
of organisational strategies
• Identify the five main classes of business
activity and classify LSOs into each
• Discuss the contributions of LSOs to the
economy, both positive & negative
Large-scale
Organisations
AOS 1: LSOs in Context
Business
Management
AREA OF STUDY 1 – LSOs In Context
LSO’s
Environments of
businesses
• Definition
• Characteristics
(how to identify
them)
• Typical
management
functions
• How to distinguish
between various
kinds of LSO’s
(ownership, focus,
activity)
• Mission and vision
statements
☐
• Positive/ negative
contributions of
LSO’s
• What are
stakeholders
• Interests and
conflicts of
stakeholders
• How they relate to
environments
• Internal and
external
environment
• Internal, operating
and macro
environment
☐
Where to next:
KPI’s
• How do we
evaluate the
performance of
businesses
• What is
efficiency/effective
ness
• What are some
specific indicators
to assess
performance
☐
Where to next:
Further on LSOs
• The SMART way of
objectives
• Hierarchy and types
of objectives
• Typical management
functions (more
depth)
• LSO Economic
Contributions (more
depth)
☐
Objectives & Strategies of LSOs
Does anyone know what
these are?
Vision
Vision Statement………
Mission Statement……
Mission
Statement
Set
Objectives
Develop
Strategies
Objectives & Strategies of LSOs
•Vision Statement: A broad/inspirational
statement that describes the business’
dreams for the future
•Mission Statement: A written statement
that sets out who the business is, what it
exists for and how it will achieve its
objectives
Honda’s Mission Statement
1980s:
“We will crush, squash, and slaughter
Yamaha!”
Present:
“Maintaining a global viewpoint, we are
dedicated to supplying products of the
highest quality, yet at a reasonable price
for worldwide customer satisfaction.”
Ford Vision & Mission Statements
FORD’s Vision and Mission Statement
- VISION - To become the world’s leading consumer company for automotive
products and services. Our values: the customer is Job One. We do the right thing
for our customers, our people, our environment and our society. By improving
everything we do, we provide superior returns to our shareholders.
- MISSION - We are a global family with a proud heritage, passionately committed
to providing personal mobility for people around the world. We anticipate
consumer needs and deliver outstanding products that improve people’s lives.
Aus Post Vision & Mission Statements
AUSTRALIA POST’s Vision and Mission Statement
- VISION - Australia Post is committed to providing high-quality mail and parcel
services to all Australians. Our enthusiastic, professional people will build a
progressive commercial corporation through a commitment to high levels of
customer satisfaction.
- MISSION - We will meet our customers' changing needs by providing:
- innovative and easy-to-use products and services;
- friendly service by knowledgeable staff;
- consistent on-time delivery;
- value for money; and
- modern, efficient networks.
- Vision - Our vision for every child,
Life in all its fullness
Our prayer for every heart,
The will to make it so.
- Mission - Our mission is to be a Christian organisation that
engages people to eliminate poverty and its causes.
Objectives & Strategies of LSOs
How about these?
Objectives………
Strategies……
Vision
Mission
Statement
Set
Objectives
Develop
Strategies
Objectives & Strategies of LSOs
•Objective: A desired goal,
outcome or specific result
that an organisation intends
to achieve
•Strategies: the actions that
an organisation takes to
achieve a specific objective
Vision
Mission
Statement
Set
Objectives
Develop
Strategies
Levels of Planning
- Strategic (corporate) Planning – Far reaching planning (perhaps
between 2 and 5 years) through which a business seeks to manage
resources and business opportunities to achieve long-term objectives.
- Tactical (departmental) Planning – Medium term planning (about 1-2
years duration) which provides some detail on how the organisations
overall corporate plan will be achieved. This planning is usually carried
out at the departmental (or divisional) level.
- Operational Planning – Planning at lowers levels of management of
the day to day activities of an organisation. This is a detailed level of
planning, often of a technical or practical nature. Although its general
direction is set by higher levels of management, it is usually undertaken
by supervisors or leading hands.
Categorising Industries
• Primary industries
• Secondary industries
• Tertiary
• Quaternary
• Quinary
Primary industries
These industries produce raw materials like wheat, wool and meat and make use of
natural resources such as minerals and forests.
In the past:
Primary industry was the leading sector in Australian industry. People used to say that
Australia's economy was `riding on the sheep's back'.
Right now:
Natural resources are no longer viewed as limitless and the industry is trying to balance
using resources and looking after them so they will still be around in the future
(sustainable development). There is also a trend to lower employment in farming.
Secondary industries
This is the manufacturing industry, where basic materials are turned into saleable
products, such as the production of clothing from cotton or wool or the manufacture
of electronics or machines.
In the past:
Secondary industry played a powerful economic role, fuelled by the waves of
migration of the 1950s and 1960s.
Right now:
Increased overseas competition, trade, and the phasing out of tariff protection has
reduced this industry. Employment has been reduced, but there is growth in
`knowledge-intensive industries' such as computer manufacturing and bioengineering.
Tertiary industries
The tertiary sector of the economy is the service industry. This
sector provides services to the general population and to
businesses. Activities associated with this sector include retail
and wholesale sales, transportation and distribution,
entertainment (movies, television, radio, music, theater, etc.),
restaurants, clerical services, media, tourism, insurance, banking,
healthcare, and law.
Quaternary industries
The quaternary sector consists of those industries providing information
services, such as computing, ICT (information and communication
technologies), consultancy (offering advice to businesses) and R&D (research,
particularly in scientific fields).
Quinary industries
This industry includes hospitality, health and social assistance,
personal and other services
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 favourable BoP 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.
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)