In a company form of business has huge funds at its disposal.

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Q. A company X limited manufacturing cosmetics, which has enjoyed a pre-eminent position in business, has grown in size. Its business was very good till 1991. But after that, new liberalised environment has seen entry of many MNC’s in the sector.

With the result the market share of X limited has declined. The company had followed a very centralised business model with Directors and divisional heads making even minor decisions. Before 1991 this business model had served the company very well as consumers had no choice. But now the company is under pressure to reform.

Questions
What organisation structure changes should the company bring about in order to retain its market share?
How will the changes suggested by you help the firm? Keep in mind that the sector in which the company is FMCG.

Q. Read the following statements:
i) "Working Capital is the amount of funds necessary to cover the cost of operating the enterprise."
ii) "Circulating capital means current assets of a company that are changed in the ordinary course of business from one form to another."

Financial planning arrives at

(a) minimising the external borrowing by resorting to equity issues

(b) entering that the firm always have significantly more fund than required so that there is no paucity of funds

(d) doing only what is possible with the funds that the firms has at its disposal

Q. To issue sweat equity shares, company shall ensure that it has elapsed at least __________ year after commencement of business.

A company X Ltd. manufacturing cosmetics, which has enjoyed a pre-eminent position in a business, has grown in size. Its business was very good till 1991. But after that, a new liberalised environment has seen an entry of many MNC's in the sector.

With the result, the market share of X Ltd. has declined. The company had followed a very centralised business model with directors and divisional heads making even minor decisions. Before 1991, this business model had sewed the company very well as consumers have no choice. But now, the company is under pressure to reform.

What organisation structure changes should the company bring about in order to retain its market share?

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