Fashion Letter (FL) Jane Irfan used to be a senior manager for a high-street clothing retailer, but her role was made redundant in 2014. She set up FL in 2015 as an online clothing retailer. Her aim was to create an intrapreneurial, dynamic, low-cost clothing retailer. Jane decided on the following mission statement 'To empower customers by empowering employees within our dynamic corporate culture.' FL's customers access the business through an app and they pay a subscription fee to FL each month. The app links to all the main social media services. Based on each customer's profile and online activity, one item of clothing is chosen each month by FL's artificial intelligence (AI) system. The item of FL's board of directors think that the business is too narrowly focused. It has asked Jane to develop a strategy of diversification. Jane believes it is time for FL to challenge its existing strategies. Jane has recruited a new Director of Strategy who has experience of using a blue ocean strategy Appendix 1: FL's employees in 2015 - Six software developers with experience of working for global software businesses, such as Google. - A Marketing Director who previously worked for a large national supermarket chain. - A Finance Director who has limited experience but graduated from a top university. Appendix 3: Extract from a 2021 newspaper article about FL's takeover of GY GY has been a clothing manufacturer for over 80 years, supplying many well-known high street clothing retailers. GY owns a number of factories based in low-cost countries. However, the rise of online retailers that require a fast turnaround of designs and low profit margins has put pressure on GY. $$$\mathrm{FL}$$$, one of the success stories of the last few years, has made a takeover bid for $$$\mathrm{GY}$$$. FL will significantly increase its gearing by taking over GY, but the opportunity to manufacture its own products may give FL a competitive advantage. Evaluate the impact of FL's corporate culture on the success of the business between 2015 and 2022.

Business

IGCSE&ALevel

CAIE

Exam No：9609_w23_qp_42 Year：2023 Question No：IGCSE&ALevelBusiness2023A20066

Answer:

Knowledge points:

7.1.1.1 the purpose and attributes of an organisational structure such as flexibility, meeting the needs of the business, allowing for growth and development and encouraging intrapreneurship

7.1.2.1 the advantages and disadvantages of the different types of structure

7.1.2.2 why some organisations are structured by product and others by function or geographical area

7.1.2.3 the reasons and ways structures change e.g. due to growth or delayering

7.1.2.4 the features of a formal structure: levels of hierarchy, chain of command, span of control, responsibility, authority, delegation, accountability, centralised, decentralised

7.1.3.1 the relationship between delegation and accountability

7.1.3.2 the processes of accountability in a business

7.1.3.3 the impact of delegation on a business

7.1.4.1 the relationship between span of control and levels of hierarchy

7.1.4.2 the difference between authority and responsibility

7.1.4.3 the conflicts between control and trust that might arise when delegating

7.1.5.1 the impact of centralisation and decentralisation on a business

7.1.6.1 examples of and distinctions between line and staff functions and the conflicts between them

7.4.1.1 the difference between ‘hard’ and ‘soft’ HRM

7.4.1.2 flexible working contracts: advantages and disadvantages of temporary contracts or flexible contracts including zero hours contracts, part-time, full-time, annualised hours, flexi-time, home working, shift working, job sharing, compressed working hours, the gig economy

7.4.1.3 the measurement, causes and consequences of poor employee performance

7.4.1.4 strategies for improving employee performance

7.4.1.5 Management by Objectives (MBO) – implementation and usefulness

7.4.1.6 the changing role of Information Technology (IT) and Artificial Intelligence (AI) in HRM

Answer:

Knowledge points:

Solution:

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