Business 0450 · IGCSE · Organisation and management
Organisation and management — practice question
VIS offers a range of insurance services, including cover for cars and electrical products. Last year, retained profit fell. The Managing Director blames higher taxation and also believes that some markets have become more competitive. Customer complaints have also risen. The Managing Director intends to alter the business organisational structure by removing both the regional directors and the regional managers. She said: ‘Shorter chains of command may help. I know some employees may need training.’ She is unsure which suitable communication method to use to tell employees about the changes to the organisational structure.
(a)[2]
Identify two reasons for a rise in market competition.
(b)[2]
Identify two training methods that a business may use.
(c)[4]
Identify and explain two ways higher taxation might affect VIS.
(d)[6]
Identify and explain two advantages for VIS of changing its organisational structure.
(e)[6]
Recommend the most suitable method of communication VIS should use to tell employees about the changes to its organisational structure. 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: “Globalisation.” …