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Australian Mineral Resources (AMR) and Jerridleri Mining have been negotiating a merger with the aim of achieving economies of scale - VCE - SSCE Business Management - Question 1 - 2008 - Paper 1
Question 1
Australian Mineral Resources (AMR) and Jerridleri Mining have been negotiating a merger with the aim of achieving economies of scale. The Chief Executive Officers (C... show full transcript
Worked Solution & Example Answer:Australian Mineral Resources (AMR) and Jerridleri Mining have been negotiating a merger with the aim of achieving economies of scale - VCE - SSCE Business Management - Question 1 - 2008 - Paper 1
Step 1
Define mission statement.
Answer
A mission statement is a formal summary that outlines the fundamental reasons for an organization’s existence. It generally encapsulates the organization's objectives and philosophy, guiding both employees and stakeholders on the core purpose of the organization. Essentially, it answers the question, 'Why do we exist?'
Step 2
Define organisational structure.
Answer
Organisational structure refers to the system that outlines how certain activities are directed in order to achieve an organization’s goals. This includes the roles, responsibilities, and communication flow among individuals within the organization. The structure helps determine how information flows within the company and can take various forms, such as hierarchical, flat, or matrix.
Step 3
Describe the key features of a matrix organisational structure.
Answer
A matrix organisational structure is characterized by a dual reporting system where employees report to both a functional manager and a project manager. Key features include:
- Dual Authority: Employees have multiple supervisors, minimizing the isolation of functional departments.
- Flexibility: It allows for a dynamic work environment, enabling easier adaptation to change.
- Collaboration: Encourages teamwork across different functional areas, fostering communication and shared resources.
- Specialization: Combines the benefits of a functional structure's specialization with the focus of a project-based approach.