IGCSE Business Studies 2.2. Organisation and management Topic Practice

Explain the benefits to BW of employing part-time employees and full-time employees. Do you think Bob should continue to employ only part-time employees? Justify your answer.

Part-time employees:
Full-time employees:
Conclusion:

SRB is a bank which provides loans to business customers. SRB plans to make 100 managers' jobs redundant from its 80 branches. This would remove one level of hierarchy. This is part of its plan to save $\$ 1 \mathrm{~m}$ in costs over the next 2 years. The Managing Director said: 'SRB is working with the trade union about this plan. SRB will make more use of delegation.The bank has to respond to increased competition from online banks. SRB could either advertise more or develop new products and services.'

AHG is an established business as it has been operating for a long time. It sells garden products including plants and flowers. AHG uses competitive pricing. The business has 4 managers and 30 other employees. All AHG's managers use delegation. The Finance Manager is analysing AHG's statement of financial position as she is interested in its liquidity. An extract is shown in Table 1.1.

Explain two advantages to AHG of its managers using delegation.

Advantage 1:
Explanation:
Advantage 2:
Explanation:

Explain two leadership styles that the Managing Director of BB may use.

Leadership style 1:
Explanation:

Leadership style 2:
Explanation:

FBW manufactures watches using job production. It employs 5 full-time production employees. Each worker is offered regular training. Last year FBW sold 600 watches. The Managing Director plans to use break-even analysis to help decide whether to increase the price of its products. FBW's current break-even chart is shown in Fig. 1.1.

Explain two benefits to FBW of having full-time employees.

Benefit 1:
Explanation:
Benefit 2:
Explanation:

Consider three leadership styles that Benjy could use when managing BB. Which leadership style should Benjy use? Justify your answer.

Leadership style 1:
Leadership style 2:
Leadership style 3:
Recommendation:

Explain two drawbacks for EP of having a tall organisational structure.
Drawback 1:
Explanation:
Drawback 2:
Explanation:

RSL manufactures paint using flow production．Last year it produced 10 million litres of paint．RSL has 6 managers and 80 employees working in its factory．The managers use different leadership styles．RSL uses email and telephone calls as its methods of internal communication．The Operations Manager wants to understand why some manufacturing businesses are relocating their operations to other countries．

Explain two leadership styles RSL's managers might use.

Leadership style 1:
Explanation:
Leadership style 2:
Explanation:

Amir and Carla are business partners. They own a luxury hotel which operates in a niche market. The business has a short hierarchical structure. Amir and Carla use Herzberg's theory of motivation to keep their 5 employees well motivated. Amir and Carla are considering opening another hotel in a different city. They will need to identify a suitable source of finance if they decide to expand. Secondary market research can be used to help a business decide whether it should expand.

Identify two features of a short hierarchical structure.

Feature 1:

Feature 2:

WMH is a business which operates in the secondary sector. It makes furniture including tables and chairs. WMH's employees are all members of a trade union. The Managing Director knows the business is likely to remain small. She is considering introducing new technology into WMH's factory. She also knows it is important for a manufacturing business to choose a suitable location for a factory.

Define 'trade union'.