Chapter 2

Question 1

What is organisational structure

Answer 1

Organisational structure is concerned with the way in which work is dived and allocated. It outlines the roles and responsibilities of individuals and group within organisation.

Question 2

What is Entrepreneurial structure

Answer 2

is built around the owner manager and is typical of small businesses in the early stages of their development.

Also it is often found where the entrepreneur has specialist knowledge of product or services

Question 3

Advantages of Entrepreneurial structure

Answer 3

• Fast decision making: One person making decisions so decisions are made quickly
• More responsive to the market: if the market changes the entrepreneur should recognise it and act quick
• Due to small size and lack if chain of command. The entrepreneur has good control over workforce and better goal congruence