VIS provides a range of insurance services including insurance for cars and electrical products. Last year retained profit decreased. The Managing Director blames higher taxation and also thinks that some markets have become more competitive. Customer complaints have also increased. The Managing Director plans to change the business organisational structure by removing both the regional directors and regional managers. She said: 'Shorter chains of command may help. I know some employees may need training.' She cannot decide on a suitable method of communication to inform employees about the changes to the organisational structure.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2017). The mark or mark type is shown in brackets.

1. [1] globalisation
2. [1] developments in technology such as internet, social media
3. [1] improvements in transport links
4. [1] lower barriers to entry e.g. government intervention or changes to legal controls OR free trade
5. [1] more businesses enter the market OR more products
6. [1] on-the-job
7. [1] off-the-job
8. [1] induction
9. [1] Knowledge Reduced demand OR lower sales
10. [1] Application for insurance
11. [1] Knowledge Increased costs OR lower profit
12. [1] Application so less money for training
13. [1] Knowledge May have to increase prices
14. [1] Application leading to more customer complaints
15. [1] Knowledge Might decide to relocate or stop selling some products
16. [1] Application especially as some markets have become more competitive
17. [1] Knowledge Delay plans to expand
18. [1] Knowledge Improved communication
19. [1] Analysis could reduce (customer) complaints
20. [1] Application leading to better reputation OR as fewer levels in hierarchy
21. [1] Analysis (hierarchy)
22. [1] Knowledge Lower labour costs
23. [1] Application as fewer regional managers
24. [1] Analysis reducing its expenses
25. [1] Knowledge Managing Director OR Senior managers are less remote
26. [1] Analysis so more aware of issues
27. [1] Application which may be helpful in competitive market
28. [1] Knowledge Increased (opportunities for) delegation
29. [1] Analysis can improve employee motivation leading to better productivity OR managers have more time to focus on other things
30. [1] Knowledge Quicker decision making
31. [1] Knowledge Letter
32. [1] Analysis which can be kept for future reference
33. [1] Knowledge Meeting
34. [1] Analysis as able to ask questions but some might not go
35. [1] Knowledge Email
36. [1] Analysis can be sent to everyone at the same time but some people may not read it
37. [1] Knowledge Phone call
38. [1] Analysis as it allows feedback
39. [1] Knowledge Text (SMS) OR mobile phone
40. [1] Knowledge Notice on office board
41. [1] Knowledge Notice on website OR social media