Question

‘Royal Glaze Ltd.’ continues to maintain its position as one of the largest consumer goods companies in the world. Its organisational structure is designed to facilitate the achievement of its objectives in alignment with its vision statement. The company maintains two distinct product divisions in its organisational structure - ‘Foods’ and ‘Home Care’. Looking ahead, the company is focusing on embracing changes so that it can continue to be the market leader. As part of its expansion plans, it is planning to venture into the electronics segment in the near future.

1. Identify the organisational structure of ‘Royal Glaze Ltd’.
2. Draw the organisational structure chart of ‘Royal Glaze Ltd’ considering its future plans to enter into Electronics segment.
3. State any three advantages of the type of organisational structure drawn in (ii) above.

Answer 1

(i) Divisional structure is the organisational structure of ‘Royal Glaze Ltd.’

(ii)

(iii)

1. Product specialisation: A product specialization is possible with a divisional structure, where each division works on a different line of products. This makes it easier to develop better products and marketing plans.
2. Accountability: Each division is responsible for its own work, making it easy to see what’s working and what needs improvement.
3. Flexibility: Divisional arrangements are flexible and can adapt to market conditions or growth plans. ‘Royal Glaze Ltd.’ can easily add an ‘Electronics Division’ without changing the current setup.