Business 7115 · O Level

Organisation and management

14 practice questions on Organisation and management, with worked solutions and instant marking.

Identify and explain two characteristics David must have to succeed as an entrepreneur.

May/June 2015

Consult Appendix 1.

May/June 2018

FGH is a private limited company. Its organisational structure is a tall hierarchy. It operates as a book retailer and intends to acquire one of its rivals for $800\text{m}$. If the acquisition goes ahead, FGH would operate $6500$ bookshops in $20$ countries. FGH’s Managing Director stated: “We expect to cut total costs by $300\text{m}$ a year once the takeover is completed. We will end all off-the-job training for employees.” The Managing Director believes FGH would gain from converting into a public limited company, although some of the other directors are unsure whether this would be a wise move.

May/June 2019

STH is an ethical business. It makes beds. Employees work in teams to produce the beds in batches of 10. Delegation is promoted so that employees can reach the higher levels of Maslow’s Hierarchy of Needs. Every team must keep in regular contact with management. The Operations Manager is concerned because the amount of wasted materials has risen during the last 3 months. She wants to raise efficiency and has found two choices; increasing training or introducing automation.

May/June 2021

GDC operates a transport delivery business in country Z. It competes in a competitive market. GDC employs 5000 staff and owns 1000 delivery vehicles. GDC’s organisational structure contains many layers of hierarchy and a long chain of command. The managers adopt an autocratic leadership style. In the previous year GDC delivered 2 billion parcels for businesses. The Managing Director said: ‘Having a good reputation is important. We have also benefited from economies of scale’. GDC plans to expand its operations into another country, but it cannot decide the best way to do this.’

Oct/Nov 2017

VIS offers a variety of insurance services, such as cover for cars and electrical products. Last year, retained profit fell. The Managing Director says this was due to higher taxation and also believes that some markets are now 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 commented: 'Shorter chains of command may be beneficial. I realise that some employees might require training.' She is unsure which communication method would be most suitable for telling employees about the organisational changes.

Oct/Nov 2017

Identify and explain one advantage and one disadvantage of Peter handing over tasks to the new Operations manager.

Oct/Nov 2018

Identify and explain how each of these four departments of MF is likely to be affected by the launch of its new product. Marketing. Human Resources (HR). Operations. Finance.

Oct/Nov 2019

SRB is a bank that lends to business customers. SRB is planning to make 100 managers’ jobs redundant across its 80 branches. This would eliminate one layer of hierarchy. It is part of the plan to cut costs by $1m over the next 2 years. The Managing Director said: ‘SRB is consulting the trade union on this plan. SRB will rely more heavily on delegation. The bank must react to greater competition from online banks. SRB could either increase advertising or create new products and services.’

Oct/Nov 2020

Explain four management functions performed by Kaari.

Oct/Nov 2021

DBG is a construction firm. It constructs hospitals, roads and schools. DBG employs 2000 people. Its managers adopt a democratic leadership style. They understand that effective internal communication matters. DBG intends to alter its organisational structure. As a result, some employees will be made redundant. The Managing Director must decide how changes in government spending could influence business activity.

Oct/Nov 2022

MRN is a food retailer. It runs 490 shops and employs 70 000 people. MRN has announced plans to shut 80 of its shops. The Human Resources Director said: ‘20% of management jobs will be removed. We want to encourage delegation. MRN will continue to follow legal controls over employment.’ MRN’s directors know it is important for businesses to react to stronger competition.

Oct/Nov 2023

Explain two management functions for CC’s new manager.

Oct/Nov 2024

Explain two consequences of BB having a short chain of command.

Oct/Nov 2024