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Wombat Airlines is a large-scale organisation that operates internationally - VCE - SSCE Business Management - Question 2 - 2009 - Paper 1
Question 2
Wombat Airlines is a large-scale organisation that operates internationally. A unique feature of this airline is that it does not outsource any part of its business.... show full transcript
Worked Solution & Example Answer:Wombat Airlines is a large-scale organisation that operates internationally - VCE - SSCE Business Management - Question 2 - 2009 - Paper 1
Step 1
Describe two characteristics that would identify Wombat Airlines as a large-scale organisation.
Answer
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Employee Size: Wombat Airlines employs more than 200 staff members, which is a criterion for large-scale organisations. Larger teams facilitate extensive operations and provide varied services to ensure streamlined functionality across the airline.
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Assets and Infrastructure: Wombat Airlines possesses substantial total assets, including significant investments in aircraft and related infrastructure. This financial capability enables them to maintain quality operations and upkeep essential services.
Step 2
Outline three ways that large-scale organisations contribute to the economy.
Answer
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Employment: Large-scale organisations like Wombat Airlines create numerous job opportunities, thus contributing significantly to local and national economies by providing stable employment.
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Infrastructure Development: They stimulate growth by investing in infrastructure such as transportation, facilities, and technology which enhances societal framework.
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Export Revenue: By operating internationally, Wombat Airlines generates export income, bringing financial benefits to the country by facilitating global trade and tourism.
Step 3
Discuss two differences between the operations of a service business and the operations of a manufacturing business.
Answer
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Nature of Output: Service businesses, such as Wombat Airlines, provide intangible products (e.g., travel experiences) that cannot be stored, whereas manufacturing businesses produce tangible goods (e.g., machinery) that can be produced and stored before sale.
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Customer Interaction: In service business operations, there is often direct interaction with customers (e.g., flight attendants assist passengers), compared to manufacturing businesses where customer contact is less frequent and usually occurs post-production.
Step 4
Identify and describe one operations management strategy from each of the two areas selected.
Answer
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Facilities Design and Layout: Wombat Airlines should adopt an efficient layout in its airport terminals to streamline passenger flow, reducing wait times and enhancing customer satisfaction.
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Management of Quality: Implementing a robust quality management system can ensure high standards for in-flight services and meals, which is essential in maintaining customer loyalty and establishing a reputable brand.
Step 5
Explain the positive and negative aspects of two ethical and social responsibility issues.
Answer
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Environmental Impact:
- Positive: By investing in sustainable aviation fuel, Wombat Airlines can decrease its carbon footprint, positioning itself as a leader in environmental responsibility.
- Negative: Despite efforts, the aviation sector inherently contributes to pollution; balancing growth and sustainability can be challenging.
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Labor Practices:
- Positive: Wombat Airlines can take an ethical stance by providing fair wages and gender equality, enhancing its public image and employee morale.
- Negative: However, maintaining competitive pricing while ensuring fair labor practices can lead to increased operational costs.