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Business Studies · 2023 · 6 marks
CBSE 2023 · Region 1 · Set 1 · Q33
‘Sweets and More’ is one of India's most popularbrand for snacks and sweets, It offers a wide range ofsweets, namkeens, cookies and frozen foods.Its organisational structure comprises of separatebusiness units in each of the above categories. Each ofthese units have a manager responsible for performance,having authority over the unit. Moreover, each of theseunits is multi-functional as within each unit, differentfunctions like production, marketing. finance, etc. areperformed. Though this kind of organizational structureleads to increased cost because of duplication ofactivities across products, but it provides a proper basisfor performance measurement as revenues and costsrelated to each of these business units can be easilyidentified.(a)Identify the organisational structure of ‘Sweets andMore.’(b)State three advantages and two disadvantages of theorganisational structure identifed in (a) above which arenot discussed in the above case.
‘Sweets and More’ is one of India's most popular
brand for snacks and sweets, It offers a wide range of
sweets, namkeens, cookies and frozen foods.
Its organisational structure comprises of separate
business units in each of the above categories. Each of
these units have a manager responsible for performance,
having authority over the unit. Moreover, each of these
units is multi-functional as within each unit, different
functions like production, marketing. finance, etc. are
performed. Though this kind of organizational structure
leads to increased cost because of duplication of
activities across products, but it provides a proper basis
for performance measurement as revenues and costs
related to each of these business units can be easily
identified.
(a)
Identify the organisational structure of ‘Sweets and
More.’
(b)
State three advantages and two disadvantages of the
organisational structure identifed in (a) above which are
not discussed in the above case.
Marking-scheme solution
(a)
Divisional structure
(b)
Three advantages of divisional structure:
Product specialisation helps in the development of
(i)
varied skills in a divisional head and this prepares
him for higher positions. This is because he gains
experience in all functions related to a particular
product.
It promotes flexibility and initiative because each
(ii)
division functions as an autonomous unit which
leads to faster decision making.
It facilitates expansion and growth as new
(iii)
divisions can be added without interrupting the
existing operations by merely adding another
divisional head and staff for the new product line.
Two disadvantages of divisional structure:
(i)
Conflict may arise among different divisions with
reference to allocation of funds and further a
particular division may seek to maximise its
profits at the cost of other divisions.
(ii)
It provides managers with the authority to
supervise all activities related to a particular
division. In course of time, such a manager may
gain power and in a bid to assert his independence
may ignore organisational interests.
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CBSE Class 12 Business Studies past-paper question from the 2023board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.