Paper 1/3

Question 1

Public limited company definition

Answer 1

A company that has offered shares of stock to the public, where the buyers of the shares have limited liability.

Question 2

One advantage and one disadvantage of a company operating as a public limited company.

Answer 2

Advantages:
- Raising large amounts of finance by issuing shares to the public, which helps them expand their operations.
- More prestige/status
- Banks will offer them loans with lower interest rates.

Disadvantages:
- Dilution of control, where the owners lose full control of ownership if they do not have majority.
- Lack of privacy since their financial records are publicized.

Question 3

Gig economy definition

Answer 3

A labor market characterized through short-term contracts or freelance work rather than a permanent job. This saves the business a lot of cost.

Question 4

Freelancers definition

Answer 4

Someone who is self-employed and works for multiple employers at once. Freelancers are part of the gig economy.

Question 5

Greenwashing definition

Answer 5

When a business provides the public and investors with misleading information about the environmental impact of a company’s product/service. It makes false claims, claiming that it is environmentally sustainable where in reality, they have a heavy carbon footprint.

Question 6

Revenue streams definition

Answer 6

Different sources of income coming into the business from activities like the sale of goods and services, advertising revenue, subscription fees and merchandise.

Question 7

Environmental sustainability definition

Answer 7

Refers to the ability of an economy to maintain the use of renewable and non-renewable resources without jeopardizing future generations. Using Earth’s scarce resources is not environmentally sustainable since they can’t be replenished.

Question 8

Shamrock organization definition

Answer 8

It is on a model suggested by the Irish “Charles Handy”, who believed that business should take advantage of changes in the external environment and its impact on workforce planning. He expressed this using the national symbol of Ireland, the Shamrock.

The model suggests that business can reduce costs and gain competitive advantage by trimming their workforce to a multi-skilled core in order to deliver a product/service.

First Leaf -> Core managers, technicians and employees.

Second Leaf -> The “Contractual Fringe”, where non-core activities are outsourced to specialist businesses (freelancers).

Third Leaf -> Flexible workforce made up of part-time, temporary and seasonal workers (low-skilled).

Question 9

Using the Shamrock Organization Model by Charles Handy, explain the different employees at Bon.

Answer 9

There are 60 permanent workers referred to as “core” by Charles Handy, as they are loyal to the company and are highly paid, and have fringe payments.

Question 10

Construct an organizational structure for the company.

Answer 10

Flat:
1. Board of Directors
2. CEO
3. Split into HR, Finance, Operations, Marketing.
4. Lil bros

Matrix: By region

Question 11

Autocratic style of leadership definition and features

Answer 11

A strict and rigid management style where subordinates aren’t consulted.

Features:
- No delegation
- One-way and centralized
- Power

Question 12

Paternalistic style of leadership definition and features

Answer 12

Where the leader acts a parent and makes decisions in the best interest of the subordinates.

Features:
- Good relationships with employees
- Blind trust
- “Father Figure”

Question 13

Democratic style of leadership definition and features

Answer 13

Where the employees are involved and consulted in the decision-making.

Features:
- Improves staff morale
- Time-consuming
- Workers sometimes get too relaxed
- Delegation

Question 14

Laissez-faire style of leadership definition and features

Answer 14

Translates to “leave alone” where only high-skilled employees are consulted and the rest are left.

Features:
- Workers feel more independent and motivated
- Innovative tasks
- Creativity

Question 15

Situational style of leadership definition and features

Answer 15

When the leader adapts the leadership style according to the situation.

Features:
- More efficient
- Causes confusion for employees

Question 16

Redundancies definition

Answer 16

Letting go of workers if/when their jobs are no longer needed, perhaps due to an economic recession.

Question 17

Consequences of redudancies

Answer 17

Bad reputation, pay for training, redundancy compensation.

Question 18

Explain the importance of eco-friendly alternatives such as bamboo.

Answer 18

• Bamboo is part of the circular economy, which is… .
• However, it is not enough as energy-saving methods like solar panels must be implemented.
• No greenwashing
• Less fossil fuels
• Shuttle bus
• Reduce waste in land fills

Question 19

Advantages and disadvantages of operating seasonal

Answer 19

Advantages:
- Flexible
- Cutting cash
- High revenue during peak season

Disadvantages:
- Over-dependence on seasonal demands
- Volatility of sales and cash flow

Question 20

With reference to the external environment explain the challenges facing Bon.

Answer 20

Social: Changing consumer needs, demographic and cultural diversity.

Technological: Digital disruption, live streaming, online security risks hacking.

Economic: Uncertainty and high interest rates, inflation.

Environmental: Climate change, pollution, landfills.

Question 21

Maslow

Answer 21

Maslow believed that people have needs that must be met to motivate them, which he ordered based on importance. The basic needs at the bottom of the hierarchy are the most important, and must be met no matter what. The first 4 levels are all considered basic needs that eventually ‘go away’ when met and the individual does not feel any anxiety. The rest of the needs are considered growth needs, and do not ‘go away’ when met. Instead, the individual strives to find new ways to meet the needs, and be the best they can in as many fields as possible in order to fulfill their potential. It disregards a key issue faced by managers where individuals are demotivated when needs are met.

Question 22

McClelland

Answer 22

David McClelland believed that an employee’s motivation is influenced by three needs: Achievement, affiliation and power.

Achievement: Motivates employees who want to work on tasks and succeed through mastery and hard work.

Affiliation: Motivates employees through the forming of social relationships. These employees prefer being in groups and care about what others think of them.

Power: Motivates employees who want to encourage, influence and teach others. They think in terms of winning and losing, and want to win and gain power.

No employee falls perfectly under one of these categories, and they are interconnected. All employees have some measurement of each of these needs. For example, an employee motivated by power can also want to form social relationships and be liked. When managers understand their employee’s needs, they can create a motivational approach for each of them.