Kesar & Co. is a successful shoe manufacturing company. They planned to expand their business activities by adding more line of products like leather, belts, and garments.
(i) Which type of structure was it earlier? Explain.
(ii) What would you recommend the structure to be after expansion?
(iii) Why would you recommend this structure after expansion?
Kesar & Co. is a successful shoe manufacturing company. They planned to expand their business activities by adding more line of products like leather, belts, and garments.
(i) Which type of structure was it earlier? Explain.
(ii) What would you recommend the structure to be after expansion?
(iii) Why would you recommend this structure after expansion?
(i) As a shoe manufacturing company, Kesar & Co. had a functional structure as they had only one standardised product – shoe in manufacturing. Accordingly, functional grouped under homogenous sub-groups or business units. This structure ensures that
(ii) However, as they have planned to expand their business activities by adding more line of products like leather, belts, and garments, they could transform their functional structure into divisional structure. Under this structure, Kesar & Co. will have product-based and division with accountability and decision-making is separated from a centralised authority to a decentralised structure.
(iii) A divisional structure is recommended because firstly, Kesar & Co. can specialise in leather, belts, shoes, and garments separately with specific resources being deployed for each products line. Secondly, each division will focus on specialised efforts and employees can adapt and respond to local changes easily and quickly.
(i) As a shoe manufacturing company, Kesar & Co. had a functional structure as they had only one standardised product – shoe in manufacturing. Accordingly, functional grouped under homogenous sub-groups or business units. This structure ensures that
(ii) However, as they have planned to expand their business activities by adding more line of products like leather, belts, and garments, they could transform their functional structure into divisional structure. Under this structure, Kesar & Co. will have product-based and division with accountability and decision-making is separated from a centralised authority to a decentralised structure.
(iii) A divisional structure is recommended because firstly, Kesar & Co. can specialise in leather, belts, shoes, and garments separately with specific resources being deployed for each products line. Secondly, each division will focus on specialised efforts and employees can adapt and respond to local changes easily and quickly.
