When a fishing equipment retailer was taken over by a larger business, the new owners changed its aim from survival to growth. They want to open two additio...
Question 1 Report
When a fishing equipment retailer was taken over by a larger business, the new owners changed its aim from survival to growth. They want to open two additional shops, increase online selling and use a more centralised organisational structure. Existing managers fear that local customer knowledge will be ignored.
(a) Identify one growth objective for the retailer. [1]
(b) Explain one benefit of setting a sales objective for each shop. [2]
(c) Explain one possible disadvantage of a centralised structure when meeting local objectives. [2]
(d) Which stakeholder may be concerned if the takeover leads to job losses? [1]
(e) What should the new owners do if an objective is no longer achievable because demand falls? [1]
Answer Details
(a) A suitable growth objective is to open two new shops by a stated date. Increasing online sales by a stated percentage would also be valid. [1]
(b) A sales objective gives each shop manager a clear target to work towards. [1] The owners can compare actual sales with targets and identify shops that need support or corrective action. [1]
(c) In a centralised structure, senior managers make decisions rather than local shop managers. [1] This can delay responses to local customer demand or mean that valuable local knowledge is ignored. [1]
(d) Employees or workers may be concerned if the takeover leads to job losses. [1]
(e) The owners should review and revise the objective to make it realistic if falling demand means it is no longer achievable. [1]
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