Business 7115 · O Level · Organisation and management
Organisation and management — practice question
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.
(a)[2]
Identify two causes that can make markets become more competitive.
(b)[2]
Identify two training methods that a business could use.
(c)[4]
Identify and explain two ways in which higher taxation could affect VIS.
(d)[6]
Identify and explain two advantages for VIS of changing its organisational structure.
(e)[6]
Recommend the most suitable communication method 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: “The process of globalisation” …