Question

Siyaram & Co are running a shoe manufacturing company successfully. So they planned

to expand their business activities by adding more line of products, i.e., leather bags, belts and

garments. Which type of structure would you recommend after expansion and why?​

Answer 1

Answer:

Bhuvan & Co. are manufacturing only one product so the most suitable organisation structure is functional but on expansion if they are adding more line of products then the suitable organisation structure will be divisional structure as it is a perfect structure for multi-product manufacturing company due to following reasons: (Give advantages of divisional structure).

1. Product specialization : All the activities related to one type of product are grouped under one department only which bring integration and co-ordination in the activities.
2. Fast decision making : The decision are taken much faster in divisional structure because there is no dependence on other departments for taking decision.