Business 0450 · IGCSE · Organisation and management
Organisation and management — practice question
FGH is a private limited company with a tall hierarchical organisational structure. It is a book retailer that intends to acquire one of its competitors for $800m. If the takeover goes ahead, FGH would operate 6 500 bookshops in 20 countries. The Managing Director of FGH said: ‘We expect total costs to fall by $300m each year after the takeover. We will end all off-the-job training for employees.’ The Managing Director believes that FGH would gain from becoming a public limited company, although some of the other directors are unsure whether this is a good idea.
(a)[2]
What does ‘off-the-job training’ mean?
(b)[2]
What does the term ‘total cost’ mean?
(c)[4]
Identify and explain two benefits of FGH having a tall hierarchical organisational structure.
(d)[6]
Identify and explain one benefit and one drawback to FGH of becoming a public limited company.
(e)[6]
Do you think FGH ought to take over the other business? Support your view.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Training that takes place away from the workplace and is delivered by specialist trainers” …