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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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Number of Employees: Wombat Airlines employs more than 200 employees, which categorizes it as a large-scale organisation. This large workforce allows for a diverse range of operations and maximizes efficiency through effective task distribution.
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Global Operations: The airline operates internationally, highlighting its scale. Its ability to service multiple countries allows for higher revenue and broader market reach, which is indicative of a substantial airline operation.
Step 2
Outline three ways that large-scale organisations contribute to the economy.
Answer
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Employment Creation: Large-scale organisations like Wombat Airlines create significant job opportunities, thus reducing unemployment rates in the region where they operate.
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Economic Growth: By stimulating infrastructure development through investments in transport and information systems, these organisations enhance local economies.
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Tax Revenue: They contribute to government tax revenues, which can be used for public services and community development projects.
Step 3
Discuss two differences between the operations of a service business and the operations of a manufacturing business.
Answer
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Storage of Output: In manufacturing, such as food production at Wombat Airlines, products can be stored until needed. In contrast, services cannot be stored as they are consumed at the time of provision, such as in-flight customer service.
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Tangibility of Products: Manufactured goods are tangible and can be measured in quantity; for example, meals can be prepared and stored for flights. In contrast, services provided by flight attendants are intangible and focused on customer interactions, requiring immediate delivery.
Step 4
Identify and describe one operations management strategy from each of the two areas selected.
Answer
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Facilities Design and Layout: Wombat Airlines can optimize its facilities by redesigning the layout of its kitchens to improve workflow and reduce preparation times for in-flight meals. A well-organized kitchen can lead to quicker service during high-demand periods.
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Management of Quality: Implementing a comprehensive quality management system can help Wombat Airlines ensure high standards in food safety and customer service, leading to increased customer satisfaction and loyalty.
Step 5
Explain the positive and negative aspects of two ethical and social responsibility issues.
Answer
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Environmental Impact: A positive aspect is Wombat Airlines' commitment to reducing its carbon footprint through fuel-efficient flights. However, a negative aspect might be the environmental damage caused by airport expansions and aircraft emissions.
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Labor Practices: Ethically, providing fair wages and benefits enhances employee satisfaction and retention. Conversely, if there are reports of low wages or poor working conditions, it could lead to negative publicity and decreased consumer trust.