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Business Management SAC: Outcome 1By Lauren Stewart

1.

Define the following terms and provide an example for each:

Stakeholder- Stakeholders are individuals and groups with a vested interest inthe success or failure of a business-E.g. Suppliers are stakeholders as they depend on the business to pay them forthe goods they deliver.

Shareholders- Shareholders have money invested into the business andessentially own a fraction of that company.-E.g. A person may have bought a share in a business like Woolworths whichhas a massive market share because it is classified as a public LSO.

Globalisation- The ability to expand overseas and to develop a bigger accessnetwork worldwide.-E.g. Before technology, trade was purely internal to a country; but as countrieswere able to open communication lines and trade lines to other countries, this isan example of Globalisation as they have expanded to trade on a global level.

Effectiveness- The quality of how something is brought about and the level ofsuccess which a task or goal was accomplished.-E.g. The Success level brought about by a business strategy. They could say thatthe plan put into place was effective.

Multinational corporation- A corporation which has offices or branches inmultiple countries.-E.g. Allianz Insurance has branches all around the world.

2. Two factors from the External Environment which impact on theoperations of LSOs:

-Customers- Customers control the profitability of an organization.

-Competitiors- Other companies that sell similar goods or services couldeffect the amount of customers that go to a business.

3. Two contributions that LSOs make to the Australian Economy:Employment: LSOs provide Australians with jobs therefore they arecontributing to the decrease in unemployment rates.

GDP: LSOs are responsible for over 50% of Australias gross domesticproduct.

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4. What type of organisation is Qantas?Qantas is classifies as a LSO and is a public corporation due to itsavailability on the Australian stock exchange.

5. Why is Qantas classified as a large-scale organization (LSO)??Qantas falls under the category of LSO as it has:- A large market share- Revenue in the millions, $1408 million is 2008.- Assets above $200 million- Over 200 employs, employment of over 37 000 people.

6. What are two KPIs (Key Performance Indicators) that could be used tomeasure the success of Qantas??

-Customer and Staff satisfaction- Surveys are often used to get feedback ofthe effectiveness of a corporation, and to get information on any faultsthat need improving

-Profitability- For a corporation as big as Qantas, Profitability is a majorindicator that tells them whether they are meeting their business goalsand aspirations.