Amir and Carla work as business partners. They own a luxury hotel that operates in a niche market. The business has a short hierarchical structure. To keep their 5 employees highly motivated, Amir and Carla apply Herzberg’s theory of motivation. They are thinking about opening a second hotel in another city. If they choose to expand, they will need to identify an appropriate source of finance. Secondary market research can help a business judge whether expansion is a good idea.
(a)[2]
Identify two motivators within Herzberg’s theory of motivation.
(b)[2]
Identify two features that characterize a short hierarchical structure.
(c)[4]
Outline two advantages for Amir and Carla of operating in a niche market.
(d)[6]
Explain two sources of finance that Amir and Carla could use if they choose to expand.
(e)[6]
Do you think secondary market research is the most suitable type of market research for a business to use when deciding whether it should expand? Justify your answer.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Achievement (reaching goals)” …