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The activities and employees in ‘Elegance Pvt. Ltd.’, a footwear manufacturing company, can be broadly grouped into five departments namely; production, purchase, marketing, accounts and personnel. Over the years the company has grown and expanded its operations manifolds. The company now intends to diversify into leather bags segment. So its management has decided to restructure its operations. They plan to create separate product divisions for each product line wherein the functioning of each division will be further divided into five departments namely; production, purchase, marketing, accounts and personnel.In context of the above case:How is the company’s future organisational structures likely to be different from the existing one? State any three points of differences between the two types of organisational structures.
? Related: Case Studies - Organizing
Most Upvoted Answer
The activities and employees in ‘Elegance Pvt. Ltd.’, a footwear manuf...
At present, the company is following functional structure and it intends to adopt a divisional structure in future.
The difference between Functional organisational structure and Divisional organisational structure is as follows:
.Functional Structure -
1.Formation - It is based on functions.
2.Responsibility - It is difficult to fix responsibility on a department.
3.Specialisation - Functional specialisation
Divisional Structure -
1.Formation - It is based on product lines and is supported by functions.
2.Responsibility - It is easy to fix responsibility for performance.
3.Specialisation - Product specialisation.
The difference between Functional organisational structure and Divisional organisational structure is as follows:
.Functional Structure -
1.Formation - It is based on functions.
2.Responsibility - It is difficult to fix responsibility on a department.
3.Specialisation - Functional specialisation
Divisional Structure -
1.Formation - It is based on product lines and is supported by functions.
2.Responsibility - It is easy to fix responsibility for performance.
3.Specialisation - Product specialisation.
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The activities and employees in ‘Elegance Pvt. Ltd.’, a footwear manuf...
Future Organisational Structure of Elegance Pvt. Ltd.
Elegance Pvt. Ltd., a footwear manufacturing company, has decided to diversify into leather bags segment. To achieve this, the company's management has decided to restructure its operations. The future organisational structure of the company is likely to be different from the existing one in the following ways:
1. Creation of Separate Product Divisions
The company plans to create separate product divisions for each product line. This means that there will be a separate division for footwear and another one for leather bags. This will help the company to focus on each product line and develop a specialized team for each division.
2. Further Division of Functioning
Each division will be further divided into five departments, namely, production, purchase, marketing, accounts, and personnel. This will help the company to streamline its operations and ensure that each department is responsible for a specific function. It will also help in better coordination and communication between departments.
3. Increase in Organisational Complexity
The new organisational structure will be more complex than the existing one. This is because the company will now have multiple product divisions, each with its own set of departments. This will require the company to invest in new systems and processes to manage the increased complexity.
Three Points of Differences Between the Two Types of Organisational Structures
1. Focus on Product Lines
The new organisational structure will focus on product lines, with separate divisions for each product line. In contrast, the existing organisational structure does not have separate divisions for different product lines.
2. Specialization of Teams
The new organisational structure will help the company to develop specialized teams for each product division. This will ensure that each team is focused on a specific product line and has the necessary expertise to develop and market the products effectively. In contrast, the existing organisational structure does not have specialized teams for different product lines.
3. Increased Complexity
The new organisational structure will be more complex than the existing one. This is because the company will have multiple product divisions, each with its own set of departments. This will require the company to invest in new systems and processes to manage the increased complexity. In contrast, the existing organisational structure is simpler and easier to manage.
Elegance Pvt. Ltd., a footwear manufacturing company, has decided to diversify into leather bags segment. To achieve this, the company's management has decided to restructure its operations. The future organisational structure of the company is likely to be different from the existing one in the following ways:
1. Creation of Separate Product Divisions
The company plans to create separate product divisions for each product line. This means that there will be a separate division for footwear and another one for leather bags. This will help the company to focus on each product line and develop a specialized team for each division.
2. Further Division of Functioning
Each division will be further divided into five departments, namely, production, purchase, marketing, accounts, and personnel. This will help the company to streamline its operations and ensure that each department is responsible for a specific function. It will also help in better coordination and communication between departments.
3. Increase in Organisational Complexity
The new organisational structure will be more complex than the existing one. This is because the company will now have multiple product divisions, each with its own set of departments. This will require the company to invest in new systems and processes to manage the increased complexity.
Three Points of Differences Between the Two Types of Organisational Structures
1. Focus on Product Lines
The new organisational structure will focus on product lines, with separate divisions for each product line. In contrast, the existing organisational structure does not have separate divisions for different product lines.
2. Specialization of Teams
The new organisational structure will help the company to develop specialized teams for each product division. This will ensure that each team is focused on a specific product line and has the necessary expertise to develop and market the products effectively. In contrast, the existing organisational structure does not have specialized teams for different product lines.
3. Increased Complexity
The new organisational structure will be more complex than the existing one. This is because the company will have multiple product divisions, each with its own set of departments. This will require the company to invest in new systems and processes to manage the increased complexity. In contrast, the existing organisational structure is simpler and easier to manage.
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The activities and employees in ‘Elegance Pvt. Ltd.’, a footwear manufacturing company, can be broadly grouped into five departments namely; production, purchase, marketing, accounts and personnel. Over the years the company has grown and expanded its operations manifolds. The company now intends to diversify into leather bags segment. So its management has decided to restructure its operations. They plan to create separate product divisions for each product line wherein the functioning of each division will be further divided into five departments namely; production, purchase, marketing, accounts and personnel.In context of the above case:How is the company’s future organisational structures likely to be different from the existing one? State any three points of differences between the two types of organisational structures. Related: Case Studies - Organizing?
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The activities and employees in ‘Elegance Pvt. Ltd.’, a footwear manufacturing company, can be broadly grouped into five departments namely; production, purchase, marketing, accounts and personnel. Over the years the company has grown and expanded its operations manifolds. The company now intends to diversify into leather bags segment. So its management has decided to restructure its operations. They plan to create separate product divisions for each product line wherein the functioning of each division will be further divided into five departments namely; production, purchase, marketing, accounts and personnel.In context of the above case:How is the company’s future organisational structures likely to be different from the existing one? State any three points of differences between the two types of organisational structures. Related: Case Studies - Organizing? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about The activities and employees in ‘Elegance Pvt. Ltd.’, a footwear manufacturing company, can be broadly grouped into five departments namely; production, purchase, marketing, accounts and personnel. Over the years the company has grown and expanded its operations manifolds. The company now intends to diversify into leather bags segment. So its management has decided to restructure its operations. They plan to create separate product divisions for each product line wherein the functioning of each division will be further divided into five departments namely; production, purchase, marketing, accounts and personnel.In context of the above case:How is the company’s future organisational structures likely to be different from the existing one? State any three points of differences between the two types of organisational structures. Related: Case Studies - Organizing? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The activities and employees in ‘Elegance Pvt. Ltd.’, a footwear manufacturing company, can be broadly grouped into five departments namely; production, purchase, marketing, accounts and personnel. Over the years the company has grown and expanded its operations manifolds. The company now intends to diversify into leather bags segment. So its management has decided to restructure its operations. They plan to create separate product divisions for each product line wherein the functioning of each division will be further divided into five departments namely; production, purchase, marketing, accounts and personnel.In context of the above case:How is the company’s future organisational structures likely to be different from the existing one? State any three points of differences between the two types of organisational structures. Related: Case Studies - Organizing?.
The activities and employees in ‘Elegance Pvt. Ltd.’, a footwear manufacturing company, can be broadly grouped into five departments namely; production, purchase, marketing, accounts and personnel. Over the years the company has grown and expanded its operations manifolds. The company now intends to diversify into leather bags segment. So its management has decided to restructure its operations. They plan to create separate product divisions for each product line wherein the functioning of each division will be further divided into five departments namely; production, purchase, marketing, accounts and personnel.In context of the above case:How is the company’s future organisational structures likely to be different from the existing one? State any three points of differences between the two types of organisational structures. Related: Case Studies - Organizing? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about The activities and employees in ‘Elegance Pvt. Ltd.’, a footwear manufacturing company, can be broadly grouped into five departments namely; production, purchase, marketing, accounts and personnel. Over the years the company has grown and expanded its operations manifolds. The company now intends to diversify into leather bags segment. So its management has decided to restructure its operations. They plan to create separate product divisions for each product line wherein the functioning of each division will be further divided into five departments namely; production, purchase, marketing, accounts and personnel.In context of the above case:How is the company’s future organisational structures likely to be different from the existing one? State any three points of differences between the two types of organisational structures. Related: Case Studies - Organizing? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The activities and employees in ‘Elegance Pvt. Ltd.’, a footwear manufacturing company, can be broadly grouped into five departments namely; production, purchase, marketing, accounts and personnel. Over the years the company has grown and expanded its operations manifolds. The company now intends to diversify into leather bags segment. So its management has decided to restructure its operations. They plan to create separate product divisions for each product line wherein the functioning of each division will be further divided into five departments namely; production, purchase, marketing, accounts and personnel.In context of the above case:How is the company’s future organisational structures likely to be different from the existing one? State any three points of differences between the two types of organisational structures. Related: Case Studies - Organizing?.
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The activities and employees in ‘Elegance Pvt. Ltd.’, a footwear manufacturing company, can be broadly grouped into five departments namely; production, purchase, marketing, accounts and personnel. Over the years the company has grown and expanded its operations manifolds. The company now intends to diversify into leather bags segment. So its management has decided to restructure its operations. They plan to create separate product divisions for each product line wherein the functioning of each division will be further divided into five departments namely; production, purchase, marketing, accounts and personnel.In context of the above case:How is the company’s future organisational structures likely to be different from the existing one? State any three points of differences between the two types of organisational structures. Related: Case Studies - Organizing?, a detailed solution for The activities and employees in ‘Elegance Pvt. Ltd.’, a footwear manufacturing company, can be broadly grouped into five departments namely; production, purchase, marketing, accounts and personnel. Over the years the company has grown and expanded its operations manifolds. The company now intends to diversify into leather bags segment. So its management has decided to restructure its operations. They plan to create separate product divisions for each product line wherein the functioning of each division will be further divided into five departments namely; production, purchase, marketing, accounts and personnel.In context of the above case:How is the company’s future organisational structures likely to be different from the existing one? State any three points of differences between the two types of organisational structures. Related: Case Studies - Organizing? has been provided alongside types of The activities and employees in ‘Elegance Pvt. Ltd.’, a footwear manufacturing company, can be broadly grouped into five departments namely; production, purchase, marketing, accounts and personnel. Over the years the company has grown and expanded its operations manifolds. The company now intends to diversify into leather bags segment. So its management has decided to restructure its operations. They plan to create separate product divisions for each product line wherein the functioning of each division will be further divided into five departments namely; production, purchase, marketing, accounts and personnel.In context of the above case:How is the company’s future organisational structures likely to be different from the existing one? State any three points of differences between the two types of organisational structures. Related: Case Studies - Organizing? theory, EduRev gives you an
ample number of questions to practice The activities and employees in ‘Elegance Pvt. Ltd.’, a footwear manufacturing company, can be broadly grouped into five departments namely; production, purchase, marketing, accounts and personnel. Over the years the company has grown and expanded its operations manifolds. The company now intends to diversify into leather bags segment. So its management has decided to restructure its operations. They plan to create separate product divisions for each product line wherein the functioning of each division will be further divided into five departments namely; production, purchase, marketing, accounts and personnel.In context of the above case:How is the company’s future organisational structures likely to be different from the existing one? State any three points of differences between the two types of organisational structures. Related: Case Studies - Organizing? tests, examples and also practice Commerce tests.
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