Kiran Industries is a company manufacturing office furniture. The company chose to diversify its operations to improve its growth potential and increase market share. As the project was important many alternatives were generated for the purpose and were thoroughly discussed amongst the members of the organisation. After evaluating the various alternatives Sukhvinder, the Managing Director of the company decided that they should add 'Home Interiors and Furnishings' as a new line of business activity. What kind of an organisational structure should such an organisation adapt?

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Solution

Such an organisational structure should adopt the divisional structure.

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Questions
Prepare a report regarding organisation structure giving concrete reasons with regard to benefits the company will derive from the steps it should take.

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