question_answer

Mohit runs a shoe manufacturing factory. He wants to expand his business. For expansion, he contemplated to enter into the manufacturing of leather bags and western formal wear apart from the running business of shoes. By doing this, his company will be able to provide many products to working women under one roof. Which organisation structure will you suggest him and why?

Answer:

I would suggest the divisional organisation structure. This structure will be suitable as it provides equal importance to all products. Advantages of divisional organisation structure are as follows: (i) Decisions are taken much faster in divisional structure. (ii) It facilitates expansion and growth as new divisions can be added without interrupting the existing operations. (iii) It leads to specialisation of physical facilities and human talent.