LSOs Business Management

LSO’s Definition Characteristics (how to identify them) How to distinguish between various kinds of LSO’s (ownership, focus, activity) Positive/ negative contributions of LSO’s Mission and vision statements Environments of businesses What are stakeholders Interests and conflicts of stakeholders How they relate to environments Internal and external environment Internal, operating and macro environment Where to next: KPI’s How do we evaluate the performance of businesses What is efficiency/effective ness What are some specific indicators to assess performance Where to next: Further on LSOs The SMART way of objectives Mission and Vision statements further Hierarchy and types of objectives Typical management functions AREA OF STUDY 1 – LSOs In Context

Looking at the forms of LSOs Companies/corporations e.g. NAB/Fernwood fitness centres. Aim is to make profit or add to their financial worth (net worth). Either privately owned (up to 50 private shareholders, eg Fernwood, Linfox, Dimmeys, Grocon) or listed on the stock exchange and publically owned (e.g. NAB) by many shareholders.

Government Business Enterprises (GBEs) Owned by one of the 3 tiers of gov’t; aim is to provide a product/service (social goal) to the public and make a profit, e.g., Australia Post, VicRoads. In the past, GBE’s were run quite inefficiently as often the government would provide funds even if they were not meeting targets. This has now changed through a process called CORPORATISATION. Corporatisation – occurs when GBE operate along the lines of a private company, requiring them to be fully accountable for expenditure, paying tax, seeking profit maximisation and increased efficiency. GBE –> Corporatisation –> Privatisation i.e. Telstra was sold-off (privatised) over a long period (3 separate listings)

Looking at the forms of LSOs Government Departments (e.g.. Defence, Education, Taxation). Aim is to provide a service to the community. Owned by the government and responsible to a government minister and public servants. Operate within a pre-determined budget and to implement policy objectives.

Looking at the forms of LSOs Charities/Foundations (also called not for profits - NFP) e.g. Salvation Army, Heart Foundation, Red Cross. Aim is provide goods, services, and funds to alleviate social problems.

Looking at the forms of LSOs Others: Religious Organisations (Catholic Church), lobby groups (Getup!), Recreational clubs (local sporting club), Councils (local council), Political Parties (Katter’s Australia Party) etc.

Categorising Industries Primary industries: They draw from nature, (e.g. farming, forestry, mining) Secondary industries: organisations that transform raw materials, (e.g. processing, manufacturing, assembly, construction) Tertiary: includes organisations that provide information, (e.g. newspapers, banks, real estate, education, postal services) and those that provide paid and voluntary domestic services, (e.g. hospitality, restaurants, child care centers, mowing, pet care)

Objectives & Strategies of LSOs Does anyone know what these are? Vision Statement……… Mission Statement…… Vision Mission Statement Set Objectives Develop Strategies

Objectives & Strategies of LSOs Vision Statement: A broad/inspirational statement that describes the business’ dreams for the future Mission Statement: A written statement that sets out who the business is, what it exists for and how it will achieve its objectives

1980s: “We will crush, squash, and slaughter Yamaha!” Present: “Maintaining a global viewpoint, we are dedicated to supplying products of the highest quality, yet at a reasonable price for worldwide customer satisfaction.” Honda’s Mission Statement

FORD’s Vision and Mission Statement - VISION - To become the world’s leading consumer company for automotive products and services. Our values: the customer is Job One. We do the right thing for our customers, our people, our environment and our society. By improving everything we do, we provide superior returns to our shareholders. - MISSION - We are a global family with a proud heritage, passionately committed to providing personal mobility for people around the world. We anticipate consumer needs and deliver outstanding products that improve people’s lives. AUSTRALIA POST’s Vision and Mission Statement - VISION - Australia Post is committed to providing high-quality mail and parcel services to all Australians. Our enthusiastic, professional people will build a progressive commercial corporation through a commitment to high levels of customer satisfaction. - MISSION - We will meet our customers' changing needs by providing: - innovative and easy-to-use products and services; - friendly service by knowledgeable staff; - consistent on-time delivery; - value for money; and - modern, efficient networks. Ford + Aus. Post Vision & Mission Statements

Vision and Mission Statement - Vision - Our vision for every child, Life in all its fullness Our prayer for every heart, The will to make it so. - Mission - Our mission is to be a Christian organisation that engages people to eliminate poverty and its causes.

Objectives & Strategies of LSOs How about these? Objectives……… Strategies…… Vision Mission Statement Set Objectives Develop Strategies

Objectives & Strategies of LSOs Vision Mission Statement Set Objectives Develop Strategies Objective: A desired goal, outcome or specific result that an organisation intends to achieve Strategies: the actions that an organisation takes to achieve a specific objective

- Strategic (corporate) Planning – Far reaching planning (perhaps between 2 and 5 years) through which a business seeks to manage resources and business opportunities to achieve long-term objectives. - Tactical (departmental) Planning – Medium term planning (about 1-2 years duration) which provides some detail on how the organisations overall corporate plan will be achieved. This planning is usually carried out at the departmental (or divisional) level. - Operational Planning – Planning at lowers levels of management of the day to day activities of an organisation. This is a detailed level of planning, often of a technical or practical nature. Although its general direction is set by higher levels of management, it is usually undertaken by supervisors or leading hands. Levels of Planning

Key Words you need in your Glossary for AOS 1 - Large Scale Organisation - Strategic Planning - Chain of Command - Decentralisation - Takeover - Merger - Public Sector - Private Sector - Government Business Enterprise - Corporatisation - Privatisation - Mission Statement - Vision Statement - Strategic/Tactical/Operational Objectives - Gross Domestic Product - Downsizing - Balance of Payments - Stakeholder - Business Environment - Internal Environment - Operating Environment - Macro Environment - External Environment - Trade Unions - Lobby Groups