IGCSE, A Level Business Student Forum

Q1 Analyse the possible impacts on hierarchy due to business growth. [6]

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Possible Structure
[KN] Horizontal & vertical extension of hierarchy with new outlets being opened.
[AN]
[AN+]

[KN] Extension in span of control with increase in customers since more sales staff would be required.
[AN]
[AN+]

[KN] Communications Gaps
[AN] communication gap results in lack of coordination among all the departments. different levels of address problems at grass root level because of no constructive engagement and corporation.
[AN+] Thus negatively effects the firms performance level

[KN] Increased Complexity
[AN] As a business expands, it often becomes more complex. New departments, teams, and roles may be added to handle the growing workload.
[AN+] This complexity can lead to a need for a more intricate organisational structure.

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Mod Comment:
- Add direction in AN1 (horizontal integration situation)
- 2nd Section needs to be rewritten in own words with justification.

[KN] Increased Organizational Complexity
[AN] As a business grows, it adds new departments and teams, which requires more layers in the management structure to handle the increased workload, making the organization more complex.
[AN+] The extra layers in the hierarchy help the organization coordinate better and communicate effectively as it grows. This strategic adjustment ensures smooth navigation of challenges and keeps operations efficient amid growth.

[KN] Delegation of Authority
[AN] As a business grows, it needs to share responsibilities by giving authority to different levels. Middle managers help connect top executives with frontline workers.
[AN+] Delegating decision-making power empowers teams and individuals for specific tasks, crucial for activity in a larger, more complex structure.

kn ; Horizontal & vertical extension of hierarchy with new outlets being opened
An; can help a company grow and expand its reach
an+; thus improving efficenciy and custoner service

KN] Delegation of Authority
[AN] As a business grows, it needs to share responsibilities by giving authority to different levels. Middle managers help connect top executives with frontline workers.
[AN+] Delegating decision-making power empowers teams and individuals for specific tasks, crucial for agility in a larger, more complex structure.
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Mod Comment:
COPIED FROM ME PLAGARISM

[KN] Horizontal & vertical extension of hierarchy with new outlets being opened.
[AN] diseconomies of scale
[AN+] costs may rise by too much

[KN] Extension in the span of control with an increase in customers since more sales staff would be required.
[AN] leads to mismanagement and ineffective communication
[AN+] operations won't run smoothly

[Kn]. Establishing new outlets in a horizontal and vertical manner to expand the hierarchy.
[An]Sales will increase due to which market share will rise
[An+]Leading towards growth and brand visibilite

[Kn]Slower decision-making
[An]Hierarchical companies tend to involve their managers and supervisors in decision-making. While this amount of expertise can seem beneficial, it can also result in slower actions.
[An+]This effect is especially prevalent when a fast decision is necessary to respond to urgent business decisions.

[KN] Horizontal & vertical extension of hierarchy with new outlets being opened.
[AN] As the business expands into new markets, the leadership recognizes the need for faster decision-making to stay competitive
[AN+] Hindering the company's ability to adapt quickly to changing market conditions will lead to them making quicker decisions regarding the business as well and flexibility will be obtained.

[KN] Extension in the span of control will increase the number of customers since more sales staff would be required.
[AN] And so due to this increase the business will find it easier to address all the customers more comfortably
[AN+] Due to the positive relationship between the customer and the business the brand image will improve as well as the loyalty of customers towards the business

[kn] horizontal & vertical extension of hierarchy with new outlets being opened
[an] this will enable the business become larger in every aspect as it expands reaching into newer markets
[an+] leads to greater market share and a good brand image

[kn] extension in span of control with increase in customers since more sales staff would be required
[an] provision of better customer service
[an+] leads to customer lyalty as theyd be satisfid

[kn] horizontal and vertical extension of hierarchy with new outlets being opened
[an] thus making business grow in every aspect as it expands reaching into newer markets
[an+] leading to brand image improved
[kn] expansion of span of control because due to increase in customers' more staff members would be required
[an] more staff workers will lead to improved customer service
[an+] which would increase customer loyalty and market share would increase

[KN] Horizontal & vertical extension of hierarchy with new outlets being opened.
[AN]Specialized Teams and Departments
[AN+] the boss might not know everyone directly hence affecting how they interact and connect with their teams

[KN] Extension in span of control with increase in customers since more sales staff would be required.
[AN]New roles and positions get created and so potentially changing how things are done and impacting the brand image
[AN+]making some employees feel more important with new roles, while others might feel left out or confused

(kn)Horizontal & vertical extension of hierarchy with new outlets being opened
(an)leading to diseconomies of scale eg miscommunication
(an+)and hence demotivating them
(kn)Extension in span of control with increase in customers since more sales staff would be required.
(an)workers might get over burdened
(an+)leading to lack of creativity

[KN] increased complications
[AN] the organization becomes more complex due to the business growth
[AN+]it requires adjustments to the hierarchy to effectively manage and coordinate the variety of departments and teams

[KN]communication and coordination challenges
[AN] the increased numbers of hierarchy levels and specialized roles may delay the flow of information
[AN+] resulting in a delayed decision making, initially resulting in a requirement of effective strategies to address these challenges

[KN] Horizontal & vertical extension of hierarchy with new outlets being opened.
[AN] This can disrupt effective communication hence can lead to delays in production.
[AN+] Thus this can negatively impact the overall performance of the business as it might experience dieconomies of scale.

[KN] Extension in span of control with increase in customers since more sales staff would be required.
[AN] Thus the work burden may increase on the employees hence complex the working routine.
[AN+] As a result the stress levels may increase and question's ones productivity.

[KN]Horizontal & vertical extension of hierarchy with new outlets being opened.
[AN] It will increase coordination between the employees which increase there efficiency.
[AN+] Thus there would be less conflicts as they will work as a team.

[KN] Extension in span of control with increase in customers since more sales staff would be required.
[AN] It will be more difficult for the employees to handle more customers so they will be more frustrated.
[AN+] And their creativity will also fall.

[KN] Horizontal & vertical extension of hierarchy with new outlets being opened.
[AN] In most cases, the horizontal extension produces a decentralized structure. A more centralized organization is frequently the result of vertical extension.
[AN+] While horizontal extension of the hierarchy can result in better local responsiveness, it can also make it more difficult to keep uniform standards and communication between outlets. Although a vertically extended hierarchy can improve coordination and control, decision-making may be slowed down as information moves up and down the hierarchy.

[KN] Extension in span of control with increase in customers since more sales staff would be required.
[AN] A management concept known as "span of control" describes the number of workers who directly report to a single manager or supervisor. An increase in customers and the extension of the span of control indicate the need for additional salespeople to handle rising sales volumes.
[AN+] As the company grows, it is implied that managers or supervisors may be in charge of a larger team, highlighting the significance of good management techniques to sustain output and guarantee the contentment of both clients and staff.