Radiant Industries Ltd. wants to operate in the national and international markets. It appoints Mr. Gupta and Mr. Anand to guide on how best it can design its organization structure. It puts forth the following propositions to Mr. Gupta and Mr. Anand.
a. Competition is getting intense both in national and international markets and we want to maintain our competitiveness in the concerned markets.
b. We want to increase efficiency at tactical and operating levels.
c. We want to diversify into as many geographical locations as possible.
d. We want to maintain quality control on our products.
e. We want our workers to specialize in their respective areas of operations.
Questions-
1. What kind of organization structure do you think Mr. Gupta and Mr. Anand will design for the company? State its relative merits and limitations.
2. Do you suggest any change in the organization structure if the company wants to operate only at the national level where competition is not intense?
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Explanation:
In the case study quoted for the Radiant industries, the organization has adapted corporate structure.
It is managed by the leader of the corporation group but power is cascaded down the business units also. In corporate, the business values remain the same for all the units, however their strategies can vary depending upon the market of each business sector
The organization has adapted two main strategies. One strategy was to build upon the new technology and becoming market innovator. Other one is to enhance efficiencies keeping quality consistent
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