Comprehension

Royal Glaze Ltd. continues to maintain its position as one of the largest consumer goods companies in the world. Its organisational structure is designed to facilitate the achievement of its objectives in alignment with its vision statement. The company maintains two distinct product divisions in its organisational structure- ’Foods’ and ’Home Care’. Looking ahead, the company is focusing on embracing changes so that it can continue to be the market leader. As part of its expansion plans, it is planning to venture into the electronics segment in the near future.

Question: 1

Identify the organisational structure of ’Royal Glaze Ltd.’

Updated On: Feb 26, 2025
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Solution and Explanation

Organisational Structure of Royal Glaze Ltd.: Based on the description, Royal Glaze Ltd. follows a Divisional Organisational Structure. This structure is organized around distinct product divisions like ’Foods’ and ’Home Care’. It allows the company to focus on specific products, ensuring specialized management and attention. The divisional structure is also flexible enough to allow the company to easily adapt to changes, such as venturing into the Electronics segment.
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Question: 2

Draw the organisational structure chart of Royal Glaze Ltd. considering its future plans to enter into the Electronics segment.

Updated On: Feb 26, 2025
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Solution and Explanation

Organisational Structure Chart: Below is the proposed organisational structure for Royal Glaze Ltd. considering its future plans to enter the Electronics segment:
 Organisational Structure Chart
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Question: 3

State any three advantages of the type of organisational structure drawn in (ii) above.

Updated On: Feb 26, 2025
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Solution and Explanation

Three Advantages of the Divisional Organisational Structure:
1. Focused Attention on Products/Services: With separate divisions for ’Foods’, ’Home Care’, and the upcoming ’Electronics’, each product line gets dedicated management, improving efficiency and performance.
2. Flexibility and Adaptability: The divisional structure allows the company to easily introduce new divisions, such as the planned Electronics division, without disrupting existing operations.
3. Improved Accountability and Performance: Each division operates almost like an independent entity with its own set of objectives and targets, making it easier to hold divisional managers accountable for performance
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