✓ Board-verified
Business Studies · 2026 · 3 marks
CBSE 2026 · Region 1 · Set 1 · Q22
‘Soal Footwear Ltd.’ is known for its high quality athletic shoes and casualsneakers. With increasing competition and changing consumerpreferences, it decided to diversify its product range by adding clothing,bags and accessories under the same brand umbrella. This diversificationaimed to capture a larger share of the market and increase customerloyalty.(i)Suggest with reason which type of organisational structure will besuitable for ‘Soal Footwear Ltd.’(ii)State any two advantages of the organisational structure suggestedin (i) above.
‘Soal Footwear Ltd.’ is known for its high quality athletic shoes and casual
sneakers. With increasing competition and changing consumer
preferences, it decided to diversify its product range by adding clothing,
bags and accessories under the same brand umbrella. This diversification
aimed to capture a larger share of the market and increase customer
loyalty.
(i)
Suggest with reason which type of organisational structure will be
suitable for ‘Soal Footwear Ltd.’
(ii)
State any two advantages of the organisational structure suggested
in (i) above.
Marking-scheme solution
(i)
Divisional structure
Reason: Divisional structure is suitable where a large variety of products
are manufactured / the company has decided to diversify its product
range.
(ii)
Advantages of Divisional structure
(a)
Product specialisation helps in the development of varied skills in a
divisional head and thus prepares him for higher positions.
(b)
Divisional heads are accountable for profits as revenues and costs
related to different departments can be easily identified and assigned to
them.
(c)
It promotes flexibility and initiative because each division functions
as an autonomous unit which leads to faster decision making.
(d)
It facilitates expansion and growth as new divisions can be added
without interrupting the existing operations by merely adding another
divisional head and staff for the new product line.
More from Organising
- Identify the type of organization structure depicted in the above diagram:2023
- Explain the following points of importance of Organising function of management: (i) Benefits of…2023
- The obligation of a subordinate to properly perform the assigned duty is called:2023
- Inspired by the success of Chandrayaan-3, the Chief Scientist at ‘Space Rover’ a private research group,…2024
- State any three points of difference between Formal organisation and Informal organisation. OR State any…2026
- Organising provides a clear description of jobs and related duties. This helps to avoid confusion and…2025
- Explain the following points of importance of delegation: (i) Employee development (ii) Motivation of…2026
- Due to spread of COVID-19 pandemic, employees of almost all the companies were working online from their…2023
CBSE Class 12 Business Studies past-paper question from the 2026board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.