1. Shearings has changed its organisational structure to create two separate divisions. To what extent might this new structure improve the performance of the business?

2. Structure of answer.. Opening definition
Reasons why the new structure may improve performance
Reasons why the new structure may not improve performance
Application to text throughout
Conclusion/Evaluation

3. Opening Definition
An organisational structure is the way a business is arranged to carry out its activities

4. It might not improve performance because...
It might create redundancies
which would impact on motivation and productivity.
it may increase costs
because some roles may be duplicated

5. It may improve performance because....
It may help to narrow the span of control
which may allow for more delegation
this may be especially significant as Shearings is a growing company.
Communication might improve
because each division will now be smaller with fewer levels of hierarchy

6. In conclusion.... Whether or not the new structure improves the
performance...
Depends on whether staff are trained to perform new roles
Performance may dip in the short term as staff get used to new roles.

7. Do you agree with Shearings’ decision to move into the mass market for holiday services? Justify your decision.

8. Opening definition
A mass market has large numbers of consumers, often purchasing similar types of products.

9. In favour.. The size of the 55+ market is growing
and this may attract other major holiday firms such as Thomas Cook – this could result in lost sales for Shearings.
The company has launched its first new brand ‘Country and Coast Hotels’
this has been successful, suggesting that further brands should be launched.

10. Against the decision... Shearings profit margin is only 2.75%
are they financially stable enough to be thinking of expansion
There are some well established players in the mass market ie Thomas Cook
they may be able to offer lower prices, can Shearings compete with this.

11. In Conclusion..
In the long term Shearings may have to move towards to the mass market if they are to achieve their aim of expansion.
Developing new brands to acieve this move might be a lower risk approach (alternative recommendation)
Costs are rising, perhaps they should wait.