Question : A corporation with a Rs.20,000 crore authorised share capital has been registered under the Companies Act. Its manufacturing facility is located in a less developed Bihar area, although its registered office is in Delhi. The company's marketing division is located in Bhopal. The business produces fast-moving consumer goods (FMCG). Which organisational structure would best meet the needs of the business?
Option 1: Functional structure
Option 2: Divisional structure
Option 3: Formal organisational structure
Option 4: Informal organisational structure
Correct Answer: Divisional structure
Solution : Divisional structure has the following benefits: 1. Product specialisation fosters the growth of a variety of abilities. 2. It aids in the fixing of accountability as divisional leaders are responsible for the profits, revenues, and expenses associated with their departments. 3. It encourages flexibility, innovation, and quicker decision-making because each section operates independently. 4. As additional divisions can be introduced without disrupting current operations, it supports expansion and growth. 5. Due to the integration of all activities pertaining to a specific product line, the issue of departmental coordination is lessened. Hence, the correct option is 2.