Business Studies A Level by G. Gorman (auth.)

By G. Gorman (auth.)

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Note that there are alternative ways of illustrating simultaneous activities. 1. Network notation Networks can be used to determine the likely duration of a project, the sequence in which different activities must take place and the effect of delays in individual activities upon the completion date of the whole project. For example a network should be able to assess the likely impact of a delay in constructing the walls of a building because of bad weather or slow work. 17 Network analysis - simultaneous activities node $ number earliest start time of subsequent activities F and G are completed.

6 and would earn £20000 profit. 4 and would earn only £8000 in profit. 3. Open after market research and extra promotion. This would cost £5000 and reduce the return from success or failure by that amount. 15, with returns varying from £3000 to £20000. Only the immediate sale has a certain outcome, but this is lower than will be earned if the shop is opened successfully. One way of evaluating whether the risk of opening is worthwhile is to calculate the expected values of each decision. This is done by 'weighting' the returns from success or failure by their probabilities.

This experience can be seen in the wider context of change within industry which has shown an increasing tendency to emphasize smallerscale, more autonomous, units of control. In many aspects we are seeing a reaction to the increased concentration which took place through the merger activities of the 1960s and 1970s. In general, the view is that big has been disappointing, and that much of the problem can be accounted for through either the diseconomies of managerialcontrol, or more pertinently, the effects of an increased divorce between ownership and control.

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