A-Level Outreach Program
Welcome to an installment of Aberystwyth Business School's Video Lecture Series.
These lectures are in-line with the A-level Business Studies Curriculum across the UK.
Our apologies for the videos being only available, currently, in English
Exercise
RemaPlay is a medium sized business based in Chester.
They sell educational toys through the internet, mail ordering and catalogues.
Their focus is to compete on cost (to be a low cost supplier).
The organisation has two levels: The ownership family and the hourly paid staff.
The hourly paid staff distribution is displayed in the below table.
| Department | No. of Staff |
| Production | 24 |
| Packing | 15 |
| Warehouse | 5 |
| Office | 4 |
Current Issues
- All hourly paid staff earn the same amount.
- Insufficient organisational control on quality, cost and time elements.
- Older, and experienced staff doing more in role, but getting paid the same.
- Ownership family causing issues by doing jobs poorly, and not delegating (as there is no hierarchy to delegate to).
- "The left-hand does not know what the right-hand is doing"
Questions
- Outline why the lack of hierarchy might lead to problems in running the business.
-
How does the current structure affect;
- Profitability?
- Morale?
- Communication in general?
- Explain how RemaPlay should be structured via an organisational chart.
- How might your organisation structure improve operations and profitability?
