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02:Identify and explain two advantages of FGH having a tall hierarchical organisational structure.[4]

Posted: Fri Jan 02, 2026 10:27 pm
by Dania
FGH is a private limited company. FGH has a tall hierarchical organisational structure. It is a book retailer which plans to take over one of its competitors for $800m. If the takeover happens, FGH would have 6 500 bookshops across 20 countries. FGH’s Managing Director said: ‘We expect to reduce total costs by $300m each year after the takeover. We will stop all off-the-job training of employees.

02:Identify and explain two advantages of FGH having a tall hierarchical organisational structure.[4]

Possible KN Points:
>Many opportunities for promotion.
>Fewer people to supervise.
>Clear chain of command/ know their manager.
>Clear line of communication.