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Question
Neha runs a factory wherein she manufactures shoes. The business has been doing well and she intends to expand by diversifying into leather bags as well as western formal wear thereby making her company a complete provider of corporate wear. This will enable her to market her business unit as the one stop for working women. Which type of structure would you recommend for her expanded organisation and why?
Solution
For Neha’s expanded organisation, Divisional Structure is recommended.
The usefulness of it is as follows:-
• She will avail the benefits of specialisation. As she introducing new items it will be better to make divisions for each product.
• She will be able to know her profit o loss margins and thereby plan accordingly.
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