Practise analysing tall organisational structures and evaluating their advantages and disadvantages using IB Business Management HL questions and mark schemes.
Kos Palouk’s own business It was clear that the construction of a new facility would create a number of opportunities for local entrepreneurs in a range of different markets. Kos had already started to think about the future of his own small produce distribution business. Should he expand it? He knew that he could increase the scale of his business operations with the UWP Mission without any additional marketing. This would also allow for significant economies of scale, but the logistics would be more complex. He would have to drive and collect produce using dangerous remote unpaved roads outside the protection of the UWP Mission. These remote communities might perceive Kos as collaborating with the UWP troops. He would also have to dedicate all his time to his business and would no longer be able to work in the officers’ dining hall. Although that job did not pay particularly well, it was in a safe environment and provided a regular source of income. To collect larger quantities of produce in remote areas, Kos would need to purchase a large lorry (truck). He discussed potential sources of finance with his bank. The bank manager indicated as a condition for the granting of a loan that the bank would require the lorry as collateral. Secondly, the poor quality of the roads meant that the lorry would lose value quickly.
| Source of income ($ per month) | Option 1 | Option 2 |
|---|---|---|
| (i) Produce distribution business (from Appendix 5a above) | 150 | 1500 |
| (ii) Salary from job at the officers’ dining hall | 500 | 0 |
| Total income from all sources | 650 | 1500 |
To support himself and his family, Kos needs an income of $550 per month.
The UWP Mission to Loyka was based in Beral, the capital of the country. The autocratic General Ron Meiri was appointed by the UWP as Commander. The organizational structure of the UWP Mission was tall and centralized, with several levels of hierarchy and a narrow span of control (Appendix 1). This structure fitted well with the organizational culture of the military. This organization was not flexible, but it ensured that orders were clearly understood and always followed. As a consequence the security of the UWP troops was maintained.
UWP Mission organizational chart
N.B. Battalions are divided into companies, companies into platoons, and platoons into squads (as is demonstrated with the second battalion). These subdivisions would apply to all other battalions in the organizational chart.
"The organizational structure of the UWP Mission was tall". Explain one advantage and one disadvantage of this type of structure.