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a. Describe two factors from the internal and/or external environments of large-scale organisations, and discuss how they have impacted an organisation that you have studied this year - VCE - SSCE Business Management - Question 3 - 2012 - Paper 1
Question 3
a. Describe two factors from the internal and/or external environments of large-scale organisations, and discuss how they have impacted an organisation that you have... show full transcript
Worked Solution & Example Answer:a. Describe two factors from the internal and/or external environments of large-scale organisations, and discuss how they have impacted an organisation that you have studied this year - VCE - SSCE Business Management - Question 3 - 2012 - Paper 1
Step 1
Describe two factors from the internal and/or external environments of large-scale organisations, and discuss how they have impacted an organisation that you have studied this year.
Answer
In examining the internal and external environments of large-scale organisations, we can consider two critical factors: Management Structures and Market Forces.
Management Structures
An internal factor is the management structure of an organisation. For example, the decision-making hierarchy can significantly affect how quickly an organisation responds to changes in the market. If management is decentralized, employees at various levels have the autonomy to make decisions, leading to faster innovation and responsiveness to market demands.
In a case study of a multinational corporation, the shift to a more participatory management style allowed for quicker response times to customer feedback, ultimately improving customer satisfaction.
Market Forces
An external factor includes market forces that an organisation cannot control, such as competition and economic conditions. For instance, during an economic downturn, businesses might face reduced consumer spending. An organisation I studied adapted its strategy by cutting costs and focusing on customer loyalty programs to retain its customer base.
Understanding these factors' impacts has shown that effective management and responsiveness to external pressures are crucial for sustaining long-term success.
Step 2
Explain two differences between the objectives of for-profit and not-for-profit large-scale organisations.
Answer
The objectives of for-profit and not-for-profit organisations differ in fundamental ways:
Profit Generation vs. Social Impact
For-profit organisations primarily aim to generate profit for their shareholders. Their decisions often revolve around increasing revenue and maximizing financial returns. In contrast, not-for-profit organisations focus on social impact, seeking to address community needs and provide services that improve the common good. Meeting societal goals often takes precedence over financial gain.
Stakeholder Focus
Additionally, for-profit organisations typically prioritize the interests of shareholders, aiming to provide returns on investments. Not-for-profits, however, are accountable to a broader range of stakeholders, including community members, volunteers, and donors. Their objectives often reflect collaborative efforts to ensure resources are directed toward fulfilling their social missions.
Step 3
Explain a significant change issue that you have studied this year and describe two ways in which it impacts on large-scale organisations.
Answer
One significant change issue I studied this year is the digital transformation affecting large-scale organisations. This shift to digital technologies has profound implications for how businesses operate.
Increased Efficiency
Firstly, digital transformation increases operational efficiency. By automating routine tasks, organisations can reduce costs and streamline processes, allowing employees to focus more on strategic initiatives than on mundane administrative tasks.
Enhanced Customer Engagement
Secondly, it often leads to enhanced customer engagement. With digital platforms, organisations can interact with customers through multiple channels, providing personalized experiences and gathering feedback in real time. This responsiveness helps to foster customer loyalty and adapt services to meet changing consumer preferences.