Business 0450 · IGCSE · Organisation and management
Organisation and management — practice question
GDC is a transport delivery firm in country Z. It works in a competitive market. GDC employs 5000 workers and has 1000 delivery vehicles. GDC’s organisational structure contains many layers of hierarchy with a long chain of command. The managers adopt an autocratic leadership style. Last year, GDC delivered 2 billion parcels for businesses. The Managing Director said: ‘Having a good reputation matters. We have also gained from economies of scale’. GDC plans to expand its operations into another country, but it cannot decide the best way to do this.
(a)[2]
What does the term ‘economies of scale’ mean?
(b)[2]
What does the term ‘autocratic leadership style’ mean?
(c)[4]
Identify and explain one benefit and one drawback of GDC’s organisational structure.
(d)[6]
Identify and explain two reasons why having a good reputation could matter to GDC.
(e)[6]
Recommend the most suitable method for GDC to expand its business into another country. 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: “Reasons why average costs fall when a business grows bigger” …