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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 - Business Studies

Short Note

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?

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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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