BUISENESS MANAGEMENT
BUSINESS STRUCTURE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A hotel chain that aims to solve customer complaints in any of its hotels immediately
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A national fast food chain that prides itself on consistent levels of customer service across all of its outlets
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A national clothes retailer that wants to offer customers the same product range in all branches and benefit from bulk buying stock
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A chain of coffee shops that aims to offer the same experience to customers regardless of the outlet visited
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Detailed explanation-1: -A centralised structure is where business decisions are made at the top of the business or in a head office and distributed down the chain of command . It is often used in retail chains.
Detailed explanation-2: -3 levels of management in organizational hierarchy; (1) Top-level, (2) middle-level, and (3) lower level. Top-level managers are responsible for setting organizational goals.
Detailed explanation-3: -What is a Hierarchical Organizational Structure? A hierarchical organizational structure contains a direct chain of command from the top of the organization to the bottom. Senior management makes all critical decisions, which are then passed down through subsidiary levels of management.
Detailed explanation-4: -According to some scholars, an organizational structure based on formal control may increase innovative performance by enabling coordination among different functional units, increasing the level of cost effectiveness, decreasing uncertainty and minimizing mistakes (Schultz et al., 2013).