Transcript Lesson 7
Q: Monty Burn’s Co. is the company that owns a Nuclear Power station that supplies power to much of the state. Evaluate the contribution of this LSO to the economy. 4 Marks Q: Monty Burn’s Co. is the company that owns a Nuclear Power station that supplies power to much of the state. Evaluate the contribution of this LSO to the economy. • Outline how LSOs both contribute positively and negatively to the economy (keeping this general) • Make a statement about how Monty Burn’s co. would have both negative and positive contributions. • Identify and explain at least one from both +/ve & -/ve • Make a judgement as to whether overall this company is good for the economy and defend this judgement (as per ‘justify’) AGENDA • Mind map – business environments • Homework Questions + Case Study questions • New content: Performance Indicators Chapter 1: Activities - 1.3, 1.6 & Exam preparation Questions 2-3 (page 25) Chapter 2: Activity 2.1, 2.4, 2.5 LEARNING INTENTIONS Students will be able to: • Distinguish between efficiency and effectiveness • Identify and describe nine common performance indicators • Suggest and justify performance indicators for use in measuring specific goals Performance Indicator Terms Efficiency – The way the organisation uses its available resources to achieve its goals and objectives. - Examine inputs/resources and how they are turned into outputs. Effectiveness – The ability of an organisation to achieve its goals and objectives Performance Indicator Terms Productivity – is a quantitative measure of efficiency, measuring the relationship between inputs and outputs. Performance Indicators – are criteria used to measure the performance of the organisation in terms of efficiency and effectiveness. They can be financial or non-financial. Performance Indicators Why? Tools to measure progress towards achievement of organisational objectives. Can be: Quantitative – measuring quantity Qualitative – measuring quality (can be expressed in numbers though). I.e. likert scale Performance Indicators Performance Measures must be: • Relevant – does it measure what we want? • Valid – can we (have we) collect(ed) the information? • Reliable – source? Anecdotal or empirical? VCE Performance Indicators you need to know: • % market share • Net profit figures • Rate of productivity growth • Number of sales, • Results of a staff and/or customer satisfaction survey • Level of staff turnover • Level of wastage • Number of customer complaints • Number of workplace accidents Objectives – Management Take notes on these 9 from your textbook Management Functions • Operations: producing the organisation’s final output (product or service) • Marketing: Developing strategies to create an ongoing relationship between the organisation and its customers (and to attract new customers) • Human Resources (HR): managing the overall relationship between an organisation and its employees (contracts, training, negotiating pay disputes etc.) • Research & Development (R&D): studying & developing new and improved products for the organisation • Finance: planning, maintaining and reporting on the financials (monetary) aspects of an organisation and its performance 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. 4 Categories of Objectives (pg 16-17) • Financial: desired financial performance – maximising profit, growing sales, expanding market share* etc. • Service: meeting the needs of customers, i.e. reducing call centre waiting times, adding online ‘chat’ help functions etc. • Ethical & social responsibility: participating in the community as a ‘corporate citizen’. Can be in adopting policies that reflect community values*, helping in the community etc. • Environmental: minimising use of natural resources and the impact on nature of its business. SMART Goals (pg 13) • • • • • Specific Measurable Achievable (but still challenging) Relevant Time-bound (they have a time frame to complete) Stakeholders & the business environment • 3 Levels • Includes ‘stakeholders’