Organisational Structure And Analysis

Question 1

What is the market size?

Answer 1

The number of buyers and sellers in a particular market

Question 2

Why is market sizing important

Answer 2

Identity trends - keeping up with how consumers identify them selves & adapt your products

Clues businesses on necessary drives of demand

Indicates whether a substitute market/brand is on the horizon

Question 3

What are the benefits of a clear organisational structure?

Answer 3

Faster decision making
Improved operating efficiency
Greater employee performance
Eliminates duplication of work
Reduced employee conflict
Better communication
Organise workflow

Question 4

What are some advantages of a flat organisational structure?

Answer 4

-Small companies - easy communication
-Everyone involved in decision making
-Quick decision making
-Adapts better to change
-Better employee relations

Question 5

What are some disadvantages of a flat organisational structure?

Answer 5

-managers will have more work to do (less managers)
-not suitable for complex activity

Question 6

What is a flat organisational structure?

Answer 6

Few or no levels of middle management between the staff and the executives - shorter chain of command

Question 7

What is a tall/ hierarchal organisational structure?

Answer 7

More layers of management between frontline employees and top executives

Question 8

What are some advantages of a tall organisational structure?

Answer 8

-Authority and responsibility clearly defined
-encourages use of specialist managers and employees
-career advancement opportunities

Question 9

Disadvantages of a tall organisational structure?

Answer 9

-Communication across sections can be poor
-Can be bureaucratic (excessive rules & procedures to follow)
-Respond slowly to customer needs
-Departments can make decisions which benefit them, not the business