Business Management

Business Management

Unit 3 Corporate Mangement

Unit 3 Corporate Management

3 Outcomes Large-Scale Organisations in Australia

One SAC (20 Marks) Internal Environment of a Large-Scale Organisation

Two SACs ( 20 Marks each) The Operations Management Function

Two SACs ( 20 Marks each)

Unit 4 Corporate Management

2 OutcomesHuman Resource Management

Three SACs (20 marks each, 60 total)

Change in ManagementOne SAC (40 marks)

Exam – 50% of score

Class GuidelinesVCAA Rules applyKeep up with the workAsk Questions – I like questionsActivities due on or before due date

Activities will be typed and emailed to [email protected]

Assessment for activity will be a S or NYou must complete the ‘Test Yourself’ activity

and keep a GlossaryDefine/Example

Three rules

Outcome 1.1 Large-Scale Organisations

in Context

Outcome 1Large-Scale Organisations (LSO) in

Australia LSOs are powerful They determine:

What we will eat, drink and wear

Where we live What work we will do What knowledge and

education will be valued Decisions governments will

make Need to be able to compete

in a global market (globalisation)

What does your Organisation Do?

A business needs to develop a reason for beingHave a vision for the futureAnd have a clear idea on how it will accomplish

what it sets out to doIt does this by;

Mission and Vision StatementsGoals, Objectives and Strategies

A Mission StatementA statement of the purpose of an organisation; its

reason for being.It will include:

AimsPrimary StakeholdersHow the organisation provides value

3 Essential ComponentsKey Market – your targetContribution – what do you provideDistinction – what makes you unique

Mission StatementsExample

"To provide the fast food customer food prepared in the same high-quality manner world-wide that is tasty, reasonably-priced & delivered consistently in a low-key décor and friendly atmosphere.”

Who is it?What's the key market?Contribution?Distinction?

Vision StatementsOutlines where the organisation wants to beCan contain:

A long term viewConcentrates on the futureCan be emotiveCan be inspirational

May be part of the of the Mission StatementCan also include the organisation’s beliefs

Vision StatementExample

Our Vision

Our vision serves as the framework for our Roadmap and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, quality growth.

People: Be a great place to work where people are inspired to be the best they can be.

Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs.

Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value.

Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities.

Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities.

Productivity: Be a highly effective, lean and fast-moving organization.

Goals and Objectives Objectives

A statement on how to achieve your mission

SMARTSpecificMeasureableAttainableRealisticTime Targeted

The three essentials A Doing Word

Increase, expand, develop…..

What you want to do and by how much Increase sales by 10%

A time frame Increase sales by 10%

by 30 June 2013

StrategiesStrategies are a plan of action designed to

achieve a specific goalStrategy is all about gaining (or being prepared

to gain) a position of advantage over the competition

Our Objective: Increase sales by 10% by 30 June 2013What are some strategies?

Three Types of Organisations

Corporations or CompaniesBHP Billiton, Westfarmers, LINFOX, Australia PostOperating funds come from revenue

Government DepartmentsVictoria Police, Department of Foreign Affairs and

Trade, CentreLink, Department of EducationOperating funds come from government budget

Charities and FoundationsCARE, Red Cross, World Vision, Starlight FoundationOperating funds come from donations

Corporations/CompaniesMake or provide Goods and/or ServicesGoal is to make a profit or add to their assetsPublic Companies

Listed on the Share Market Numerous Shareholders Reporting Requirements

Private Companies Up to 50 shareholder No reporting requirements

Government Business Enterprise (GBE) Government is the shareholder Former government department

Corporations/CompaniesExamples

Public CompaniesWestfarmers, Woolworths, BHP Billiton,

The Reject ShopPrivate Companies

LINFOX, Rip CurlGovernment Business Enterprise (GBE)

Australia Post, VICRoads, South East Water

Public-Private Partnership (PPP)

Government and companies joining forces on large infrastructure projects i.e., roads, rail systems

ExamplesEastlinkCitylinkSouthern Cross Station

ChallengesLSOs are Complex Organisations

Levels of management Diverse products Globalisation The human factor

The big concern for management

PRODUCTIVITY

More output from less inputs

Productivity and the Kit Kat

How did Kit Kat become more productive?

How did Kit Kat become more productive?

They cut two corners off and changed the bar placement

Functions of an LSOManagement

Operations Human Resources Finance Marketing

Research and

Development

Where good and/or service is made or performed

Looks after staff issuesRecruitingTrainingPlanningPay

Money IssuesTaxationAccounting

SalesAdvertisingBrandingMarket Research

New ProductsResearch

Strategic PlanningDecision Making

What is Large?‘Large’ is determined by three factors

Number of Employees200 + (according to Aust. Bureau of Statistics)

RevenueGross Income (before you pay your costs)

AssetsValue of what the organisation owns

For Public Companies – the value on the share market

Australia’s Largest Companies

Employees Revenue Assets

Westfarmers BHP Billiton NAB

198,960 Employees $62 Billion per year $660 Billion

Transnational CorporationsTransnational/Multination

Owned and based in one country and have branches or subsidiaries in others

Headquarters:Melbourne, Vic

Headquarters:The Hague, Netherlands

Headquarters:Oak Brook, Ill. USA

Outcome 1.1 TaskTask 1: Complete Activity 1.1b on page 10Task 2: Activity 1.1d on page 11. Task 3: Complete Activity 1.1e on page 12All tasks are to be typed and submitted by email

on or before the due date

Organisation Type Large (Y or N) Reason

Victoria Police

BHP Billiton

Linfox

VicRoads

Ministry of DefenceQantas

Virgin Australia

Oxfam

Organisation

Type Large (Y or N) Reason