Class 12 Business Studies - Chapter Organising NCERT Solutions | A company X limited manufacturing cosmet
A company X limited manufacturing cosmetics, which has enjoyed a pre-eminent position in business, has grown in size. Its business was very good till 1991. But after that, new liberalised environment has seen entry of many MNC’s in the sector. With the result the market share of X limited has declined. The company had followed a very centralised business model with Directors and divisional heads making even minor decisions. Before 1991 this business model had served the company very well as consumers had no choice. But now the company is under pressure to reform. What organisation structure changes should the company bring about in order to retain its market share? How will the changes suggested by you help the firm? Keep in mind that the sector in which the company is FMCG.
The organisation structure changes should the company brings to retain its market share are:
- The company should increase delegation and decentralisation of authority to allow decision-making at all levels.
- Since, the company is dealing in FMCG (Fast Moving Consumer Goods Sector), the lower level staff should be given more power to clinch deals like giving them authority to give customers more discounts on bulk orders, etc. This is done because the FMCG sector characterises dynamic customer preferences and frequent change in taste which can be judged easily by people at action points.
- Development of a good communication system from lower levels to top level, to help top management take strategic decisions on changing situations.
- Suggestion systems should be initiated and good suggestions should be rewarded.
- Maximum participation in decision-making should be ensured to motivate staff and achieve good results for the company.
Benefits that the company would derive from these changes are:
- Developing initiative among subordinates.
- Development of managerial talent for future.
- Quick decision-making.
- Relief to the top management.
- Better control, since each department or individual can be held accountable for his/her results, it would facilitate better control.
More Questions From Class 12 Business Studies - Chapter Organising
- Q:-
Why delegation is considered essential for effective organising?
- Q:-
A company manufacturing sewing machines set up in 1945 by the British promoters follows formal organisation culture in totality. It is facing lot of problems in delays in decision making. As the result it is not able to adapt to changing business environment. The work force is also not motivated since they cannot vent their grievances except through formal channels, which involve red tape. Employee turnover is high. Its market share is also declining due to changed circumstances and business environment. You are to advise the company with regard to change it should bring about in its organisation structure to overcome the problems faced by it. Give reasons in terms of benefits it will derive from the changes suggested by you.
- Q:-
Neha runs a factory wherein she manufactures shoes. The business has been doing well and she intends to expand by diversifying into leather bags as well as western formal wear thereby making her company a complete provider of corporate wear. This will enable her to market her business unit as the one stop for working women. Which type of structure would you recommend for her expanded organisation and why?
- Q:-
Decentralisation is an optional policy. Explain why an organisation would choose to be decentralised.
- Q:-
Decentralisation is extending delegation to the lowest level. Comment.
- Q:-
Identify the network of social relationships which arises spontaneously due to interaction at work.
- Q:-
A company, which manufactures a popular brand of toys, has been enjoying good market reputation. It has a functional organisational structure with separate departments for Production, Marketing, Finance, Human Resources and Research and Development. Lately to use its brand name and also to cash on to new business opportunities it is thinking to diversify into manufacture of new range of electronic toys for which a new market is emerging. Which organisation structure should be adopted in this situation? Give concrete reasons with regard to benefits the company will derive from the steps it should take.
- Q:-
Can a large sized organisation be totally centralised of decentralised? Give your opinion.
- Q:-
Draw a diagram depicting a functional structure.
- Q:-
How does informal organisation support the formal organisation?
Popular Questions of Class 12 Business Studies
- Q:-
How does planning provide direction?
- Q:-
What is meant by staffing?
- Q:-
What is informal communication?
- Q:-
State the meaning of controlling.
- Q:-
What is meant by capital structure?v
- Q:-
What is meant by management?
- Q:-
What is a Treasury Bill?
- Q:-
State any two advantages of branding to marketers of goods and services?
- Q:-
What makes principles of management flexible?
- Q:-
Under which consumer right does a business firm set up consumer grievance cell?
Recently Viewed Questions of Class 12 Business Studies
- Q:-
Briefly discuss the impact of Government policy changes on business and industry.
- Q:-
Aval Ltd. is engaged in the business of export of canvas goods and bags. In the past, the performance of the company had been upto the expectations. In line with the latest demand in the market, the company decided to venture into leather goods for which it required specialised machinery. For this, the Finance Manager Prabhu prepared a financial blueprint of the organisation’s future operations to estimate the amount of funds required and the timings with the objective to ensure that enough funds are available at right time. He also collected the relevant data about the profit estimates in the coming years. By doing this, he wanted to be sure about the availability of funds from the internal sources of the business. For the remaining funds, he is trying to find out alternative sources from outside.
a. Identify the financial concept discussed in the above paragraph. Also, state the objectives to be achieved by the use of financial concept so identified. ( Financial Planning).
b. ‘There is no restriction on payment of dividend by a company’. Comment. ( Legal & Contractual Constraints)
- Q:-
Give an example to show that a business firm operates within numerous inter related factors constituting the business environment.(Hint: example highlighting the inter relatedness of dimensions of business environment).
- Q:-
Mr Shantanu is a chief manager of a reputed company that manufactures garments. He called the production manager and instructed him to keep a constant and continuous check on all the activities related to his department so that everything goes as per the set plan. He also suggested him to keep a track of the performance of all the employees in the organisation so that targets are achieved effectively and efficiently.
a. Describe any two features of Controlling highlighted in the above situation.(Goal Oriented, continuous and pervasive – any 2).
b. Explain any four points of importance of Controlling. - Q:-
What economic changes were initiated by the Government under the Industrial Policy, 1991? What impact have these changes made on business and industry?
- Q:-
Discuss the importance of motivation in directing.
- Q:-
Discuss the various ways through which the government protects consumers.
- Q:-
Why is the working capital management important, and what factors affect it?
- Q:-
Why it is important for business enterprises to understand their environment? Explain.
- Q:-
Product is a bundle of utilities. Explain.
- All Chapters Of Class 12 Business Studies
- All Subjects Of Class 12