Questions

Q1.
 
Read Extracts C, D and E in the Source Booklet before answering this question.

Assess the benefits of a matrix organisational structure for a business such as Nintendo.

 
(Total for question = 10 marks)
 

Q2.
 
Read Extract C in the Source Booklet before answering the question.

Assess the extent to which a centralized organizational structure may benefit Skechers.

A centralized organizational structure is where business decision are all made at the top of the hierarchy
by the CEOs or the headquarters of the business. Although Skechers has offices and shops globally it has
maintained a centralized organizational structure, their headquarters in the Usis where all decisions are
made.

One benefit of using centralization organizational structure is that Skechers’ headquarters can keep more
control over the 2700 shops and 3000 different styles of shoes by the implementing policies. This will help
Skechers to be more consistence and better controlled.

Another benefit may be that centralization structure increases the speed of decision making. This is
important, especially for industrialization businesses like Skechers, which has to continuously change
style to follow the trend and fashion.

Skechers can also benefit form the economies of scale, if the range is standard and the marketing
process can be organized centrally. This will help Skechers to reduce price by a reduction in units’ costs.

However, the managers in South America, Europe and Asia may be demotivated, since they have less
authority and responsibility in making decisions. This may decrease productivity and work efficiency.

There’s no straight communication from customers to headquarters, and managers in different areas are
not taking decision, the headquarters may not meet the customers needs. Since Local managers around
the world may have a better understanding of customer needs in their area. This may break customer
relations and reduce customer loyalty, if customer service is bad.

To conclude, full centralization structure will not bring many benefits to Skechers, so it might be better for
Skechers to decentralized some control that meets customers’ needs and services.
(Total for question = 10 marks)

Q3.
 
Read Extracts C, D and E in the Source Booklet before answering this question.

Assess the impact on Deutsche Bank of the changes made to its organisational structure.
 
(Total for question = 10 marks)
 

Q4.
 
Read Extracts E and F in the Source Booklet before answering this question.

Evaluate whether the change in the organisational structure at Tata Motors is likely to lead to an increase
in its efficiency.

An organisational structure shows the responsibilities, authorities, hierarchy of employees in a business.

A flat organization structure has fewer layers in the hierarchy, and at the same time the chain of command
is short but the span of control is wide.

One benefit of flat organization is that by removing the layers of middle management, Tata will reduce its
cost from paying the middle managements. This will help Tata to be more competitive in car market.

The new managing director Guenter Butsckek is aiming to speed up the decision-making process and
increase customer satisfaction. Flat organization has shorter chain of command, this will help employees’
ideas and customers needs to transfer and communicate quickly, so that Tata can meet the customer
needs quickly in order to increase customer loyalty.

Flat structure also gives opportunities to the employees to show their talent, skills and give them more
responsibilities. This will help Tata’s employees to be more motivated and increase productivity.

However, by removing middle management Tata

 
(Total for question = 20 marks)