Outcome 1.2Economic Contribution of a

Large Organisation

The science of PRODUCTION, DISTRIBUTION, and CONSUMPTION of GOODS and SERVICES

What is Economics

Advantages of being large

Economies of Scale Lower costs per unit of output

as a result of operating on a large scale Producing a lot results in each

unit being produced more cheaply

Diseconomies of Scale Organisation can be too big to

be managed efficiently

EoS: This makes large organisations efficient producers of goods and services

Employment• Direct• Consumer

Spending• Taxes• Gov’t

Spending• Indirect• A result of

consumer spending

Develop Australia’s Industrial Base• State of Art

Technology• Innovation• Research• Work Practices• Mgt Ideals

Stimulate Infrastructure Growth• Transport –

Roads, Ports and Rail

• Utilities• Buildings

Earn Export Income• Balance of

Payments• Exports bring $

$$$ into Australia

• Gross Domestic Product (GDP)

• Australia’s largest Exports?

What do LSOs bring to the economy

What do LSOs bring to the economy

Employment•Direct•Consumer Spending•Taxes•Gov’t Spending

• Indirect•A result of consumer spending

What do LSOs bring to the economy

Develop Australia’s Industrial Base• State of Art Technology• Innovation• Research• Work Practices• Mgt Ideals• Brain Power

What do LSOs bring to the economy

Stimulate Infrastructure Growth• Transport – Roads,

Ports and Rail• Utilities• Buildings

What do LSOs bring to the economy

Earn Export Income• Balance of Payments• Exports bring $$$$

into Australia• Gross Domestic

Product (GDP)• Australia’s largest

Exports?

Employment: Taking jobs offshore or downsizing Using call centres in India and the Philipines

Industrial Base: Companies taking their technologies overseas “Brain Drain”

‘Bionic Eye Project’ Infrastructure: Governments not supporting infrastructure

growth No new rail lines and highways

Hi-Speed Rail East-West Freeway

Exports: imports Electronics and Jumbo Jets

The Negative Contributions

Activity 1.2a on page 20 Complete Test Yourself and your glossary

Outcome 1.2 Task