CBSE 2025 · Region 5 · Set 1 · Q27

'Smart Aids' was a reputed company manufacturing e-

walking sticks. It is now providing e-walking sticks with sensors

or voice feedback for helping people with vision or mobility

issues to move around more safely and easily. The company has

been earning good profits.

After its great success, it wants to diversify and enter into the

manufacturing of high-class smart watches. These smart

watches will help older people to live independently and safely

while staying connected to their loved ones. These smart watches

would also monitor their health by sending emergency alerts,

reminding them to take medicines, etc. and help in managing

their health issues. It will encourage physical activity and offer

voice assistance for easy use and keep them connected with

family through calls and messages.

Though there are very homogeneous functions in both the

products, they set up a separate business unit for these watches.

Both units will have separate managers responsible for the

performance of their units and have authority over the unit.

Each manager would be accountable for profits, revenues and

costs of their unit. This type of organisational structure would

help the organisation to add new units without interrupting the

existing operations.

(i)

State the type of organisational structure suitable for 'Smart

(i)

Aids' giving reason in support of your answer.

(ii)

Give two advantages of the organisational structure, which

(ii)

are highlighted in the above case.