Fig. 1 shows the proposed organisational structure for a restaurant business that plans to open two new restaurants. The owner is deciding whether the struc...
Question 1 Report
Fig. 1 shows the proposed organisational structure for a restaurant business that plans to open two new restaurants. The owner is deciding whether the structure will help managers control the larger business.
(a) Identify the manager who has direct responsibility for Restaurant B. [1]
(b) Explain one benefit of this organisational structure as the restaurant business expands. [2]
(c) Which manager is most likely to prepare budgets for the new restaurants? [1]
Answer Details
(a) The operations manager has direct responsibility for Restaurant B, as Restaurant B is below that manager in the organisational structure. [1]
(b) The structure clearly divides responsibilities: operations are managed by the operations manager and financial work by the finance manager. The owner can delegate these areas, making the larger business easier to control as new restaurants open. [2]
(c) The finance manager is most likely to prepare budgets for the new restaurants because budgets are financial plans. [1]
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