Simply Storage is a large storage business operating in several major cities in the UK

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
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Question B1:

Simply Storage is a large storage business operating in several major cities in the UK.  It runs the firm as a franchise. The parent company uses a centralised organisational structure.  All franchises have to use exactly the same procedures.  Each franchise is run by self-employed owners/managers who provide the warehouse space, either by owning it or renting it. The owners of each franchise are also responsible for developing their individual businesses and increasing turnover.  The most successful franchise owners have built up very profitable businesses over the years.

Simply Storage does not give any incentives to its warehouse staff.  They are paid an hourly rate and there is never any overtime.  The opportunities for promotion are very limited as on average a franchise only employs four staff.  There is high staff turnover as many staff stay a few months then move on.

a) Explain two ways in which the centralised organisational procedures might affect the way in which the franchises are managed?    

b)  Advise Using Maslow’s Hierarchy of need, explain the motivation for the owners/ managers who run each franchise

c)  Suggest and justify two actions that Simply Storagecould take to motivate staff employed by each franchise

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