Gracie runs a large factory, manufacturing steel appliances. The whole organisation is divided into major functions like production, marketing, finance and purchase, which may be grouped into different departments. All the activities related to purchases are grouped under purchase department like purchase of raw materials, records of purchase of inputs and tools, etc. Similarly, activities related to marketing include sales department and advertising department are grouped in the factory.
(i) What types of structure is followed by Gracie?
(ii) State any two advantages of this structure.
(iii) What are the prerequisites or features or requirements for this type of organisational structure to work?
'Best Bulbs Pvt. Ltd.' was manufacturing good quality LED bulbs and catering to the local market. The current production of the company is 800 bulbs a day. Sumit, the marketing manager of the company, surveyed the market and decided to supply the bulbs to five-star hotels also. He anticipated the higher demand in the future and decided to buy a sophisticated machine to improve further the quality and quantity of the bulbs produced. Identify the factors affecting fixed capital requirements of the company.