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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 has over 200 employees, classifying it within the large-scale organization bracket, which is generally defined as having 200 or more staff.
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Operational Scope: The organization operates internationally and manages various complex functions internally, such as maintenance, cleaning, and food supply, indicating significant operational span typical of large-scale enterprises.
Step 2
Outline three ways that large-scale organisations contribute to the economy.
Answer
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Employment Generation: Large-scale organizations like Wombat Airlines employ a significant number of people, contributing to the job market and reducing unemployment.
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Infrastructure Development: Such organizations stimulate infrastructure growth by investing in facilities and services needed for their operations, which benefits the wider community.
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Export Capabilities: They often engage in exporting goods and services, which helps generate revenue and balance trade deficits for the country.
Step 3
Discuss two differences between the operations of a service business and the operations of a manufacturing business.
Answer
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Tangible vs. Intangible Outputs: Manufacturing businesses produce tangible goods that can be stored (e.g., airplanes), while service businesses provide intangible offerings (e.g., flight services), which cannot be stored and are consumed simultaneously.
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Customer Interaction: Service-oriented operations typically involve higher levels of customer interaction and personalization, whereas manufacturing may focus on standardized goods with minimal customer contact.
Step 4
Identify and describe one operations management strategy from each of the two areas selected. Discuss how Wombat Airlines could use them to improve its operations.
Answer
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Facilities Design and Layout: An efficient facilities layout is crucial for operational efficiency. Wombat Airlines could implement a streamlined layout for maintenance facilities to reduce turnaround times for aircraft servicing.
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Management of Quality: By adopting a comprehensive quality management system, Wombat Airlines could ensure that safety protocols and service quality are consistently met, leading to improved customer satisfaction and operational reliability.
Step 5
Explain the positive and negative aspects of two ethical and social responsibility issues that could be faced by Wombat Airlines.
Answer
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Environmental Impact:
- Positive Aspect: By investing in cleaner technologies, Wombat Airlines could reduce its carbon footprint, demonstrating a commitment to sustainability.
- Negative Aspect: However, transitioning to greener technologies may require substantial investment, impacting short-term profitability.
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Labor Practices:
- Positive Aspect: Committing to fair labor practices can enhance the company’s reputation and employee morale.
- Negative Aspect: Ensuring fair wages and benefits might increase operational costs, potentially leading to higher ticket prices.