Structural Considerations

Question 1

Organisation and management

Answer 1

• *Sole Trader** – Where one or more people run a business one main trader.
• *Partnership** – Where two or more people run a business together.
• *Company** – Where the business is owned by shareholders.

The two main management structures used are:

1. Hierarchy management structure

In these structures there is no communication between the CEO and the workers. Information in passed through the ranks. In this type of structure, the business runs how one person wants it to run.

2. Flat management structure

The CEO is still above the rest however, all the workers can communicate with each other, each has a direct line to each other, this can improve efficiency. However it doesn’t work well when there are disagreements.

Question 2

Marketing and sales

Answer 2

Marketing is the promotion of a product by an industry. Marketing strategies include:

• E-marketing – Online adverts, Social media marketing, internet site.
• Exhibitions – Good as you only get the people who are interested in that product/service.
• Promotions – Discount vouchers, free sample, etc.
• Advertising – TV, radio, newspaper, yellow pages, etc.

Question 3

Production and efficiency

Answer 3

• Production is the process of making something. Efficiency is how fast and to what expense the business operations product is produced along with the quality of the product. Efficiency can be improved by:
• Mass production
• Standardisation
• Outsourcing
• CAD/CAM
• Quality control
• Multiskilling
• Specialisation

Question 4

Technology and Restructuring

Answer 4

- Technology Involves the design, construction and/or application of innovative devices, method and machinery upon operational processes.

• Established technologies (CAD & Robotics)
• Leading edge technologies (A.I & Automated vehicles)

- Restructuring is when a business has to change certain things to stay in the changing market. Restructuring may be needed when/by:

• Emergence of new technologies
• Change in demographics of target audience
• Market research
• New production techniques and processes such as CNC Router.
• Environmental issues

Question 5

Quality control

Answer 5

• (QC) Quality Control, involves a subset of quality managment. QC Refers to operation Processes in which are done to make sure that the product quality does not fall below standard. Quality control can be done at different stages of the production.