08:Identify and explain two reasons why a good reputation might be important to GDC?[6]

[Dania]

GDC is a transport delivery business in country Z. It operates in a competitive market. GDC has 5000 employees and 1000 delivery vehicles. GDC’s organisational structure has many levels of hierarchy with a long chain of command. The managers use an autocratic leadership style. Last year GDC delivered 2 billion parcels for businesses. The Managing Director said: ‘Having a good reputation is important. We have also benefited from economies of scale’. GDC wants to expand its operations to another country, but cannot decide the best way to do this.

08:Identify and explain two reasons why a good reputation might be important to GDC?[6]

Possible KN Points:
>Build trust OR loyalty.
>Attract new customers.
>Easier to raise finance.
>Way to attract OR retain employees.
>Can charge higher prices.
>Create brand awareness.