Understanding Business UA resit

Question 1

what are some features of an organisation

Answer 1

ownership, control, objectives

Question 2

compare the features of a PLC and a Public Sector Organisation

Answer 2

first of all, a PLC is owned by shareholders, whereas a public sector organisation is owned by the government

secondly, a PLC is controlled by a board of directors, whereas a Public Sector Organisation is controlled bvy a local council

lastly, a PLC’s objectives would be to maximise profits, whereas a Public Sector wouldn’t want to maximise profits instead they would want to provide products and services to help others

Question 3

What are the different types of groupings

Answer 3

functional grouping, product/service grouping, and a place/territory grouping

Question 4

what is a functional grouping

Answer 4

this means that a PLC would have a finance, operations, marketing, and a HR department

Question 5

what is a product/service grouping

Answer 5

this is where each department/division deals with a different product or a product range

Question 6

what is a place territory grouping

Answer 6

this is where each department deals with a different geographical area where their product/service is sold

Question 7

what are the advantages to a functional grouping

Answer 7

with a PLC having a functional grouping, this would make the business structure clearer to staff, therefore making staff relationships clearer

Question 8

what are the advantages of a product/service grouping

Answer 8

each department/division can be more responsive to change in its field

expertise can develop within a division regarding to its product/service

Question 9

what are the advantages of a place/territory grouping

Answer 9

allows organisation to cater for needs of customers in different geographical areas.