Cole Brokers is a medium sized company. The company provides a range of insurance products to customers around the world. It operates in a highly competitive market. Many insurance businesses are now using the Internet as a way to sell their products. The management of Cole Brokers has been looking at its current organisational structure. They think the span of control and chain of command need to be changed. What is meant by ‘organisational structure’? What is meant by ‘chain of command’? Identify and explain two possible disadvantages for a business of having a wide span of control. Disadvantage 1: Explanation: Disadvantage 2: Explanation: Identify and explain three reasons why effective communication within a business is important to the management. Reason 1: Explanation: Reason 2: Explanation: Reason 3: Explanation: The management of Cole Brokers think that the disadvantages of e-commerce are greater than the advantages to their business. Do you agree? Justify your answer.

7115_s12_qp_12

THEORY

2012

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LEK owns 80 electrical shops. It sells products such as cell phones and televisions. The Marketing Director believes offering customers a choice of products helps LEK to be competitive. LEK must use suitable ways to communicate with its customers. LEK’s directors are planning a takeover of a competitor. This competitor owns 40 shops and operates in the same 4 regions as LEK. Fig. 1: LEK organisational chart Managing Director Region 1 Manager Region 2 Manager Region 3 Manager Region 4 Manager Shop Managers ×20 Shop Managers ×20 Shop Managers ×20 Shop Managers ×20 HR Director Finance Director Operations Director Marketing Director What is meant by ‘span of control’? Identify two factors (other than offering choice and having good communication) which could help make LEK more competitive. Factor 1: Factor 2: Identify and explain two benefits to LEK of having an organisational chart. Benefit 1: Explanation: Benefit 2: Explanation: Identify and explain two suitable methods of communication that LEK could use to communicate with its customers. Method 1: Explanation: Method 2: Explanation: Do you think that the takeover of the competitor would benefit LEK? Justify your answer.

7115_s14_qp_12

THEORY

2014

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Grenada makes meat products such as pies, burgers and ready-made meals. It employs 10 000 workers. It operates in many countries, each with different laws and traditions. Its organisation structure is tall and hierarchical. Spans of control are narrow and there is little delegation. Some middle managers complain that they are not allowed to make important decisions. The directors want to improve communication with employees. Figure 2: Organisational structure of Grenada Board of directors Senior management Middle management Lower management Other employees Identify two features of a ‘tall and hierarchical’ organisation structure. Feature 1: Feature 2: Use Figure 2 to explain what is meant by ‘chain of command’. Identify and explain two appropriate ways that the directors of Grenada can use to communicate with employees. Way 1: Explanation: Way 2: Explanation: Identify and explain two disadvantages to Grenada of operating in a number of different countries. Disadvantage 1: Explanation: Disadvantage 2: Explanation: Do you think that Grenada would benefit from greater delegation in its decision making? Justify your answer.

7115_w14_qp_12

THEORY

2014

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Kemptown Fried Chicken is a chain of fast food restaurants. The business is unsuccessful because it is badly managed. There is no organisational structure. Job tasks and roles are unclear. The workers are demotivated and low paid. Communication in the business is poor and meetings are rarely held because the management think they are ‘a non-productive use of time’. What is meant by the term ‘organisational structure’? What is meant by ‘communication in the business is poor’? Identify and explain two advantages of delegating tasks in an organisation. Advantage 1: Explanation: Advantage 2: Explanation: Identify and explain three reasons why meetings between managers and workers can benefit the business. Reason 1: Explanation: Reason 2: Explanation: Reason 3: Explanation: How effective is money in motivating workers? Justify your answer.

7115_s11_qp_12

THEORY

2011

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DBG is a construction company. It builds hospitals, roads and schools. DBG has 2000 employees. Managers use a democratic leadership style. They know effective internal communication is important. DBG plans to change its organisational structure.This will lead to some employees being made redundant. The Managing Director has to decide how changes in government spending might affect business activity. Identify two reasons why effective internal communication is important for a business. Reason 1: Reason 2: Define ‘organisational structure’. State four factors a business should consider when deciding which employees to make redundant. Factor 1: Factor 2: Factor 3: Factor 4: 1 2 Explain two advantages to DBG of its managers using a democratic leadership style. Advantage 1: Explanation: Advantage 2: Explanation: Do you think all businesses benefit from an increase in government spending? Justify your answer. [ 1 2

7115_w22_qp_12

THEORY

2022

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GDC is a transport delivery business in country Z. It operates in a competitive market. GDC has 5000 employees and 1000 delivery vehicles. GDC’s organisational structure has many levels of hierarchy with a long chain of command. The managers use an autocratic leadership style. Last year GDC delivered 2 billion parcels for businesses. The Managing Director said: ‘Having a good reputation is important. We have also benefited from economies of scale’. GDC wants to expand its operations to another country, but cannot decide the best way to do this. What is meant by ‘economies of scale’? What is meant by ‘autocratic leadership style’? Identify and explain one advantage and one disadvantage of GDC’s organisational structure. Advantage: Explanation: Disadvantage: Explanation: 1 2 Identify and explain two reasons why a good reputation might be important to GDC. Reason 1: Explanation: Reason 2: Explanation: Recommend the most suitable way for GDC to expand its business to another country. Justify your answer. [ 1 2

7115_w17_qp_11

THEORY

2017

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Michelle is the Head Teacher of a large school. She is an autocratic leader. She believes that highly motivated teachers are very important if the school is to get good examination results. The teachers are all paid the same salary. What is meant by an ‘autocratic leader’? What is meant by ‘highly motivated’? Identify and explain one advantage and one disadvantage to the teachers of them all being paid the same salary. Advantage: Explanation: Disadvantage: Explanation: Identify and explain three factors that Michelle should consider when recruiting new teachers to her school. Factor 1: Explanation: Factor 2: Explanation: Factor 3: Explanation: Do you think that the motivation of the teachers would increase if Michelle used a democratic leadership style? Justify your answer.

7115_s10_qp_12

THEORY

2010

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AM Designs is a private sector business. It makes dresses. It is a successful business because it adds value. Amira is directly responsible for a team of 12 people. ‘I want to keep a short chain of command but I do need a manager to help me. I must find someone with the right qualities. All of my team are highly motivated and someone with the wrong management style might cause problems.’ What is meant by the ‘private sector’? Identify two ways that a business could increase added value. Way 1: Way 2: Identify and explain two advantages of a short chain of command for Amira. Advantage 1: Explanation: Advantage 2: Explanation: Identify and explain three qualities that Amira might look for in a manager. Quality 1: Explanation: Quality 2: Explanation: Quality 3: Explanation: Do you think that the management style of the new manager might cause problems? Justify your answer.

7115_s13_qp_11

THEORY

2013

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George has worked in a small flower shop for 10 years. He does not like the autocratic leadership style of his manager and wants to leave. He will decide whether to start up his own business or buy a BunchesRUs franchise. The franchise would cost him $5000 but BunchesRUs would offer training and support. For either option, George will need both finance and to recruit 2 part-time employees. George knows building customer relationships will be important to the success of his business. What is meant by ‘autocratic leadership style’? Identify two possible sources of finance George could use. Source 1: Source 2: Identify and explain two reasons why building good customer relationships might be important to the success of George’s business. Reason 1: Explanation: Reason 2: Explanation: 1 1 Identify and explain one advantage and one disadvantage to George’s business of having part-time employees. Advantage: Explanation: Disadvantage: Explanation: Do you think George should buy a BunchesRUs franchise? Justify your answer. 1 1

7115_s19_qp_12

THEORY

2019

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