Management and Business Essay

5260 WordsJun 3, 201322 Pages
1st of February 2013 Business organization and management Business size Small business: e.g. Independent service-station, restaurant Medium business: e.g. coffee club, nando’s Large business: Maccas, red rooster, kfc Economies of scale; this term refers to the lower costs per unit of output as a result of operating on a larger scale. Question 1. What is meant by economies of scale? Provide 3 examples of typical economies of scale enjoyed by large organizations: a) Coles (big organization, buys in bulk) b) Costco c) Maccas 4th of February 2013 Business organization and management Public vs. Private sector Public sector is a government owned business, and a private sector is a privately owned business.…show more content…
Large organizations provide employment and training; supply goods and services that might otherwise be difficult to obtain; and are often part of the community life.International Community:The international community is increasingly seen as a stakeholder in business activities and the ocial responsibility of large organisations. It has a stake in large organisations behaving as good ‘global corporate citizens’ and will, when necessary, express concerns about questionably transnational corporation activities including those related to product pricing, climate change, natural resource use (sustainability) and employment practices.There is a great degree of interdependence between these stakeholders in large businesses – they rely on one another in many ways. However, there is also potential for tension and conflict arising from their different interests and perspectives. For example, in the case of pay levels, there is often tension between owners or managers against employees or unions. Despite both groups having a stake in organizational performance and profitability, industrial conflict can occur over how the fruits of business success are divided. Conflict can also exist between
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