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Business Studies · 2025 · 6 marks
CBSE 2025 · Region 7 · Set 1 · Q32
‘TnG' is a leading manufacturer of baby care and feminine care products and has a good market reputation. It has Production, Marketing, Human…
‘TnG' is a leading manufacturer of baby care and feminine care
products and has a good market reputation. It has Production,
Marketing, Human Resources, Customer Service and Research
and Development departments. To capitalise on its brand name
and to take advantage of new business opportunities, the company
decided to diversify into manufacturing of new range of products
like 'Beauty and Wellbeing'. 'Home Care', 'Personal Care',
'Nutrition', etc. For this, the company had to add more employees
and create more departments and choose a good organisational
structure which would help the company in achieving its
objectives.
(a)
Explain the organisational structure that "TnG' should choose
after it decided to diversify. Also give reason in support of your
Marking-scheme solution
wer.
(b)
State how the organisational structure explained in (a) above
will help the organisation and the heads of different departments.
Give two points in favour of each.
(a)
TnG should choose divisional structure after it decided to
diversify. This organisational structure comprises of separate business
units or divisions, each unit having a divisional manager responsible
for its performance.
Reason:
Divisional structure is suitable when an organisation grows and starts
manufacturing a large variety of products using different productive
resources.
(b)
Advantages of divisional structure to the organization:
(i)
Divisional heads are accountable for profits, as revenues and
costs related to different departments can be easily identified
and assigned to them, which helps the organization in
fixation of responsibility.
(ii)
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.
Advantages of divisional structure to the heads of different
departments:
(i)
Product specialisation helps in the development of varied
skills in a divisional head and prepares him for higher
positions.
(ii)
Each division functions as an autonomous unit which helps
the divisional head in faster decision making as well as
promotes flexibility and initiative.
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CBSE Class 12 Business Studies past-paper question from the 2025 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.