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BUSINESS BTEC UNIT 1 TASK 2 PASS 4
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- CIE
Answers of 2 pages for the course Unit 1 - The business environment at CIE (ANSWERS)
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Unit 1 – Business EnvironmentTask 2 – Organising Businesses to achieve Business Purpose
Pass 4
Introduction: In order to achieve Pass 4, you will be required to explain how the organisational
structure planning helps the business to achieve their purpose and aims.
Organisational Structure:
The organisational structure is the structure of the company and defines how activities like; Task
Allocation; Coordination and supervision through a hierarchal. The organisational structure is used
to help achieve the company’s aims and objectives in a more efficient and time effective way.
McDonalds:
The business aim of McDonalds is; “McDonald's brand mission is to be our customers' favourite
place and way to eat and drink. Our worldwide operations are aligned around a global
strategy called the Plan to Win, which centre on an exceptional customer experience –
People, Products, Place, Price and Promotion. We are committed to continuously improving
our operations and enhancing our customers' experience.”
The Organisational Structure of a business can affect the company’s performance in many ways,
helping it to achieve its business aims as it does so. In the case of the McDonald’s organisation the
organisation structure is a tall and narrow one – this means that except for the CEO of the
organisation everyone is subordinate to someone else within the company; someone is in charge of
them; the layout of a Tall and Narrow organisational structure is one that consists of multiple
members of staff that eventually descend to the base level employees of the organisation. The
positives of a Tall and Narrow structure is the Narrow span of control as it allows for close company
supervision of employees within the business; tall organisation structures also clearly define the
different layers within the organisation creating and evident promotional structure.
The Tall and Narrow organisation structure is effective for the McDonald’s business because of the
fact that the McDonald’s company is a large one and known on an international scale meaning that
having control and stability is extremely important to the organisation as it means the business can
run smoothly at all branches in all countries they are based in. The Tall and Narrow structure is
suited to the role of keeping control and stability because of the fact it allows room for a wide
variety of management levels – meaning that if a new issue arises they are able to create a
management team with the specific task of solving the issue without ruining the structure of the
company itself. This is important to the McDonald’s organisations business aim because of the fact
that having the ability to retain control at all their branches on a worldwide level will help them to
achieve their “Plan to win” scheme that entails them not only being the best in its market within its
domestic market (USA); but also conquering markets on an international scale. Having the ability and
opportunity for a wide variety of managers and departments all under one CEO is effective for an
organisation like this because of the fact that it helps to ensure that the company target and aim
stays focused as they only have one person who sits in the role of making the definitive business
decision; this however does not mean that other people are not needed because the availability of
the manager below the CEO are just as effective for the organisation as it allows them to have
specified skill sets concentrated within each functional area and can utilize them to not only solve
business problems but to do it swiftly so the organisations business activities are not affected
negatively by the issue.
Jordan Beadle
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