The "Key Concepts in VCE Business Management Units 3 & 4" textbook states that "large-scale organisations are characterised by a large number of employees, a large amount of assets and large revenue. The Australian Bureau of Statistics defines a large-scale organisation as one that employs 200 or more people or has assets worth more than $200 million.
Some characteristics of LSOs:
- Operate in many countries
- Produce goods and services en masse
- Have a huge range and large number of stakeholders
- Make large contributions to the economy
- Have access to huge amounts of finance
- Produce goods and services efficiently because of technology and large numbers of staff
- Produce goods and services cheaply because they can reduce costs
- Undertake long-term planning in order to achieve corporate objectives
- Have great political influence
- Group staff together into departments
- Have management structures
- Have owners or shareholders, who have little to do with day-to-day operations
Queensland and Northern Territory Aerial Services (QANTAS) is an LSO. Qantas employs over 35,000 people (according to its website), with 93% of them based in Australia. Qantas has assets worth $20.2 billion (wikipedia) and total revenue of $15.9 billion (wikipedia). Qantas carries a 65% share of the Australian domestic market and carries 18.7% of all passengers travelling in and out of Australia. The company has serviced 48.2 million passengers in 2013 so far all around the world. Qantas is also a multinational corporation. While it is owned and based in Australia, it operates in 44 countries, flying to 182 destinations.
Unlike small businesses, the owners of LSOs have little to do with the day-to-day operations of the businesses. Instead, these operations are left to managers, who make day-to-day decisions and undertake long-term planning to achieve corporate objectives. This rings true for Qantas, which has many shareholders who are all part-owners of the company, yet do not have anything to do with the day-to-day operations of the company.
As has been highlighted above, Qantas carries many characteristics that make it a large scale organisation.
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