Business 0450 · IGCSE · Internal and external communication

Internal and external communication — practice question

BGN markets furniture items like beds and tables. It began as a partnership, but it is now a private limited company. BGN has expanded rapidly and now has 10 shops in different cities. The manager of each shop is responsible for recruitment and for decisions about inventory levels. They submit a monthly report to the Board. The Managing Director uses a laissez-faire leadership style. Customer complaints have risen and employees feel that internal communications ought to be improved.
(a)[2]

Identify two steps in recruitment.

(b)[2]

Identify two possible reasons why the owners of a business may wish it to expand.

(c)[4]

Identify and explain two advantages to BGN of operating as a private limited company.

(d)[6]

Identify and explain one advantage and one disadvantage of the Managing Director’s leadership style.

(e)[6]

Explain two methods BGN could use to improve internal communication. Recommend which method BGN should choose. Justify your answer.

Worked solution & mark scheme

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