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Australian Mineral Resources (AMR) and Jirriderri Mining have been negotiating a merger with the aim of achieving economies of scale - VCE - SSCE Business Management - Question 1 - 2008 - Paper 1
Question 1
Australian Mineral Resources (AMR) and Jirriderri Mining have been negotiating a merger with the aim of achieving economies of scale. The Chief Executive Officers (C... show full transcript
Worked Solution & Example Answer:Australian Mineral Resources (AMR) and Jirriderri Mining have been negotiating a merger with the aim of achieving economies of scale - VCE - SSCE Business Management - Question 1 - 2008 - Paper 1
Step 1
Define mission statement.
Answer
A mission statement is a formal summary that articulates the fundamental purpose of an organization. It outlines the reasons for the organization's existence and provides guidance for its overall goals and direction. A good mission statement typically includes the organization's primary objectives, its target audience, and the services it offers. For instance, a mission statement may say: 'Our aim is to provide our clients with high levels of service and expertise in our mining operations.'
Step 2
Define organisational structure.
Answer
Organisational structure refers to the system used to define a hierarchy within an organization. It outlines the roles, responsibilities, and the flow of information between different levels of management and staff. This structure helps in delineating the organizational framework needed to accomplish tasks efficiently and to facilitate the cooperation of teams.
Step 3
Describe the key features of a matrix organisational structure.
Answer
A matrix organizational structure is characterized by a grid-like approach to management and task assignments, where employees report to multiple supervisors. Key features include:
- Dual Authority: Employees may have two managers, one for functional tasks and another for project-related tasks.
- Cross-Functional Teams: It encourages collaboration across different departments, enhancing flexibility in resource utilization.
- Enhanced Communication: This structure fosters better communication among team members and departments, as it requires employees to work across traditional boundaries.
- Resource Sharing: Provides the flexibility to allocate resources to different projects as needed, promoting efficiency.