Analyse the benefits to PY of maintaining a centralised organisational structure.

Mark scheme

Marking points from the official mark scheme (Feb/Mar 2019). The mark or mark type is shown in brackets.

1. [0] Definition of centralised organisational structure. Keeps all the important decision making powers within head office or the centre of the organisation
2. [0] Delegation to managers is limited
3. [0] Consistent approach across organisation and its operations. National marketing can ensure that a consistent brand image and message is communicated to customers
4. [0] Economies of scale – marketing
5. [0] Builds brand image
6. [0] Customers can be confident of what they will get in each outlet; market research confirms that this is important
7. [0] Quick decision making.
8. [0] Avoids poor decisions being made at a local level
9. [0] Yoon has focused on developing a coherent brand message to customers
10. [0] Consistent café style environment in all retail outlets – market research highlights that customers like the consistent service and product quality
11. [0] Quick decision making can enable PY to take advantage of opportunities such as in city X
12. [0] Yoon is experienced and has key influence on decisions
13. [0] National advertising has contributed to boosting PYs market share
14. [0] Linking benefit of centralisation to competitive market
15. [0] Central purchasing of supplies
16. [0] Economies of scale in marketing help keep average costs lower and thus raise profit
17. [0] Quick decision making has facilitated the initial rapid expansion of the brand
18. [0] Central buying generates EOS and reduces average costs