07:Identify and explain two advantages to VIS of changing its organisational structure[6]

[Dania]

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

07:Identify and explain two advantages to VIS of changing its organisational structure[6]

Possible KN Points:
>Improved communication.
> Lower labour costs.
>Managing an increase in efficiency Director/Senior managers are less remote.
>Increased (opportunities for) delegation.
>Quicker decision making.