CLASS XII CHAPTER 5
: ORGANIZING- CASE STUDIES
CASE 1
FreshBite Foods is a fast-growing company that produces healthy snacks such as baked chips, granola bars and fruit mixes. As the demand for its products increased in different cities, the owner, Mr. Vivek Malhotra, realised that managing all activities alone was becoming difficult. Earlier, he used to personally look after purchasing raw materials, supervising production, managing sales and even handling customer complaints.
With the expansion of the business, confusion started increasing among employees. Sometimes two workers would perform the same task, while at other times some important work remained incomplete because no one clearly knew who was responsible for it. Delivery delays also started affecting the company’s reputation.
Understanding the problem, Mr. Malhotra decided to reorganise the company’s work structure. He divided the entire work into different departments such as production, purchasing, marketing and customer service. Each department was placed under the supervision of a department manager who was responsible for coordinating the work of employees in that section. Employees were clearly informed about their duties and reporting relationships.
After this arrangement, work became more systematic. Employees knew exactly what they were supposed to do and whom they should report to. As a result, the company was able to improve efficiency, reduce confusion and deliver products to customers on time.
Identify and explain any two points of importance of Organising highlighted in the above case.
1. Benefits of Specialization: Dividing work into departments allows employees to perform specific tasks repetitively, leading to expertise and efficiency.
2. Clarity in working relationships: Specifying reporting relationships clarifies who has to report to whom, removing ambiguity in transfer of instructions.
2. Clarity in working relationships: Specifying reporting relationships clarifies who has to report to whom, removing ambiguity in transfer of instructions.
CASE 2
EduSpark Learning Centre is an institute that provides coaching classes for students preparing for board examinations. Initially, the institute had only a few teachers and a small number of students. The director of the institute, Ms. Nisha Sharma, used to manage most of the work herself, including admissions, scheduling classes, arranging study materials and communicating with parents.
However, as the institute became popular, the number of students increased rapidly. Managing all activities alone became difficult for Ms. Sharma. Sometimes class schedules overlapped, study materials were not distributed on time and students often approached the wrong person for help because responsibilities were not clearly defined.
To solve this problem, Ms. Sharma decided to organise the work of the institute more systematically. She divided the work into different sections such as academic coordination, student support services and administration. Separate coordinators were appointed to manage each section. Teachers were given clear responsibilities regarding the subjects they would teach and the classes they would handle.
This organised system helped in smooth functioning of the institute. Teachers could focus on teaching, administrative staff managed records and schedules, and students received proper guidance. The institute became more efficient and was able to handle a larger number of students successfully.
Identify and explain any two points of importance of Organising highlighted in the above case.
1. Effective Administration: Proper assignment of duties and clarity of roles avoids confusion and duplication of work.
2. Expansion and Growth: By establishing a systematic structure, the institute was able to handle a larger number of students and grow its operations.
2. Expansion and Growth: By establishing a systematic structure, the institute was able to handle a larger number of students and grow its operations.
CASE 3
Structure of Organisation: Functional and Divisional
CityCare Hospital is a private hospital that provides medical services to patients from nearby towns and villages. In its early years, the hospital had only a few doctors and nurses, and the number of patients was also limited. The hospital administrator, Mr. Arjun Khanna, used to manage most of the activities himself.
As the hospital gained a good reputation, the number of patients increased significantly. Soon, the hospital started facing problems such as delays in treatment, confusion in patient records and lack of coordination among doctors, nurses and support staff. Patients sometimes had to wait for long periods because duties were not clearly assigned.
Realising the need for better management, Mr. Khanna reorganised the hospital’s work. He created separate departments such as emergency services, outpatient services, pharmacy and administration. Each department was headed by a senior doctor or supervisor who was responsible for managing the staff and coordinating activities within the department.
With clearly defined responsibilities and reporting relationships, the hospital started functioning more smoothly. Doctors and nurses could focus on their specific duties, and patients received faster and more organised medical care. The hospital’s overall efficiency and service quality improved significantly.
Identify and explain any two points of importance of Organising highlighted in the above case.
1. Optimum Utilization of Resources: Avoids overlapping of work and ensures that human and material resources are used without wastage.
2. Adaptation to Change: It allowed the hospital to modify its structure to accommodate the growing number of patients and departments.
2. Adaptation to Change: It allowed the hospital to modify its structure to accommodate the growing number of patients and departments.
CASE 1
'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 organisational 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 identified in (a) above which are not discussed in the above case.
(a) Divisional Structure.
(b) Advantages: 1. Promotes flexibility and initiative. 2. Facilitates expansion and growth (adding new divisions is easy). 3. Faster decision-making.
Disadvantages: 1. Conflict between divisional heads for funds. 2. Tendency to ignore overall organizational interests.
(b) Advantages: 1. Promotes flexibility and initiative. 2. Facilitates expansion and growth (adding new divisions is easy). 3. Faster decision-making.
Disadvantages: 1. Conflict between divisional heads for funds. 2. Tendency to ignore overall organizational interests.
CASE 2
Sparkle Electronics started as a small company that manufactured LED bulbs and tube lights. As the demand for its products increased across different states, the company hired more employees. The Managing Director, Mr. Karan Mehta, decided to organise the company’s activities on the basis of specialised functions.
Separate departments were created for production, marketing, finance and human resources. Each department was headed by an expert who had deep knowledge in that particular field. The production department focused on improving product quality, the marketing department handled advertising and distribution, while the finance department managed funds and accounts.
This structure helped employees specialise in their respective areas and improved the efficiency of work. The company was able to produce better quality products and manage its resources more effectively. However, after a few years, the company expanded its product range and started manufacturing fans, mixers and electric kettles.
As the number of products increased, coordination between departments became difficult. Sometimes the production department focused on one product while the marketing department demanded another. Decisions also took longer because each department had to consult others before taking action. The management realised that although the existing structure helped in specialisation, it was creating difficulties in managing multiple product lines.
a) Identify the type of organisational structure discussed in the case.
b) Explain any two advantages and one limitation of this structure.
c) Suggest whether this structure is suitable for such a company or not, giving a reason.
b) Explain any two advantages and one limitation of this structure.
c) Suggest whether this structure is suitable for such a company or not, giving a reason.
a) Functional Structure.
b) Advantages: Occupational specialization and better control. Limitation: Difficulty in coordination between departments.
c) Not suitable because the company has grown into multiple product lines (Fans, Mixers, Kettles), requiring a Divisional Structure.
b) Advantages: Occupational specialization and better control. Limitation: Difficulty in coordination between departments.
c) Not suitable because the company has grown into multiple product lines (Fans, Mixers, Kettles), requiring a Divisional Structure.
CASE 3
FreshDelight Foods started its business by producing packaged fruit juices. Over time, the company expanded its operations and began producing several product lines such as dairy products, snacks and ready-to-eat meals. As the company grew, the Managing Director noticed that managing all products under one common departmental structure was becoming difficult.
To solve this problem, the company reorganised its structure by creating separate divisions for each product category. One division handled dairy products, another focused on fruit juices and the third managed ready-to-eat meals. Each division had its own production, marketing and finance teams and was headed by a divisional manager who was responsible for the performance of that product line.
This new arrangement helped the company focus on each product category separately. Divisional managers could take quick decisions according to the needs of their products and customers. The performance of each division could also be measured easily. However, the company noticed that some activities such as marketing research and administrative work were being repeated in every division, which increased the overall cost of operations.
Despite this limitation, the company felt that the structure helped them manage different products more effectively and respond quickly to market changes.
a) Identify the type of organisational structure discussed in the case.
b) Explain any two advantages and one disadvantage of this structure.
c) State one situation where this structure is most suitable.
b) Explain any two advantages and one disadvantage of this structure.
c) State one situation where this structure is most suitable.
a) Divisional Structure.
b) Advantages: Product specialization and accountability. Disadvantage: Increased cost due to duplication of activities.
c) Suitability: When an organization has several product lines or is growing rapidly.
b) Advantages: Product specialization and accountability. Disadvantage: Increased cost due to duplication of activities.
c) Suitability: When an organization has several product lines or is growing rapidly.
CASE 4
GlobalStyle Garments is a clothing company that initially produced only men’s shirts and trousers. At that time, the company followed a functional structure with departments such as production, marketing and finance. This system worked well when the company had a limited range of products.
After a few years, the company expanded its product range and started manufacturing women’s wear, children’s clothing and sportswear. The management soon realised that the existing functional structure was not very effective in handling such a wide range of products. Managers found it difficult to give equal attention to every product category.
To overcome this problem, the company introduced a divisional structure. Separate divisions were created for men’s wear, women’s wear and children’s wear. Each division had its own production, marketing and sales teams and was responsible for the success of its product category.
This change helped the company focus more effectively on the needs of different customer groups and allowed faster decision-making. However, maintaining separate teams for each division increased operational costs and required more managerial staff.
Even with these challenges, the management believed that the new structure was better suited for handling diverse product lines and improving market responsiveness.
a) Identify both types of organisational structures mentioned in the case.
b) Explain one advantage of Functional Structure and one advantage of Divisional Structure from the case.
c) State one limitation of Divisional Structure highlighted in the case.
b) Explain one advantage of Functional Structure and one advantage of Divisional Structure from the case.
c) State one limitation of Divisional Structure highlighted in the case.
a) Functional and Divisional Structures.
b) Functional Advantage: Specialized functions working well for limited products. Divisional Advantage: Faster decision-making and focus on customer groups.
c) Limitation: Increased operational costs due to separate teams.
b) Functional Advantage: Specialized functions working well for limited products. Divisional Advantage: Faster decision-making and focus on customer groups.
c) Limitation: Increased operational costs due to separate teams.
CASE 5
'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.
(i) Identify the organisational structure of 'Royal Glaze Ltd.' (ii) Draw the organisational structure chart considering Electronics segment. (iii) State any three advantages of this structure.
(i) Divisional Structure.
(iii) Advantages: 1. Product specialization. 2. Performance can be easily measured. 3. Helps in development of divisional heads.
(iii) Advantages: 1. Product specialization. 2. Performance can be easily measured. 3. Helps in development of divisional heads.
CASE 6
'Smart Aids' was a reputed company manufacturing e-walking sticks. It is now providing e-walking sticks with sensors or voice feedback... the company wants to diversify and enter into the manufacturing of high-class smart watches... Although there are very homogeneous functions in both the products, they set up a separate business unit for these watches. Both units will have separate managers responsible for the performance... Each manager would be accountable for profits, revenues and costs of their unit. This type of organisational structure would help the organisation to add new units without interrupting the existing operations.
(i) State the type of organisational structure suitable for 'Smart Aids' giving reason. (ii) Give two advantages highlighted in the case.
(i) Divisional Structure. Reason: Because the company is diversifying into a new product line (Smart Watches) and requires separate accountability.
(ii) Advantages: 1. Easy to measure performance/accountability. 2. Facilitates growth (adding new units without interruption).
(ii) Advantages: 1. Easy to measure performance/accountability. 2. Facilitates growth (adding new units without interruption).
CASE 9 (Astra Electronics)
'Astra Electronics' is a leading player in the Indian electronics market. The company originally started by selling only smartphones but has now expanded into washing machines, air conditioners, and laptop computers. To manage this growth, the Managing Director, Mr. Vikrant Mehra, decided to divide the company into four distinct business units: Smartphones, Home Appliances, Cooling Systems, and Computing.
Each unit is headed by a General Manager who has full control over their specific product line. Within each of these units, there are dedicated teams for production, sales, and customer service. While this structure allows the company to respond quickly to market changes and helps in identifying which product is making a profit or loss, the Finance Head is concerned about the high operating costs, as each unit maintains its own separate marketing and HR teams.
(a) Identify the organisational structure of 'Astra Electronics'. (b) State three advantages and two disadvantages not discussed in the case.
(a) Divisional Structure.
(b) Advantages: 1. Product specialization. 2. Promotes flexibility. 3. Facilitates future expansion. Disadvantages: 1. Conflict between divisions. 2. Divisional heads may ignore overall goals.
(b) Advantages: 1. Product specialization. 2. Promotes flexibility. 3. Facilitates future expansion. Disadvantages: 1. Conflict between divisions. 2. Divisional heads may ignore overall goals.
CASE 10 (Vastra Silks)
Formal and Informal Organisation
'Vastra Silks' is a well-known name in the textile industry based in Bhagalpur, Bihar. The company focuses exclusively on high-quality silk sarees. Since the product line is single and uniform, the CEO, Ms. Sudha Singh, believes in the power of specialization. The organization is divided into specialized departments like 'Raw Material Procurement', 'Weaving & Design', 'Quality Control', and 'Global Marketing'.
Each department is headed by an expert who reports directly to the CEO. This arrangement has helped the company achieve high levels of operational efficiency and has made training easier, as employees only need to master one specific skill. However, sometimes the 'Marketing' department promises delivery dates that the 'Weaving' department cannot meet, leading to internal conflicts.
(a) Identify the organisational structure of 'Vastra Silks'. (b) State three advantages and two disadvantages not discussed in the case.
(a) Functional Structure.
(b) Advantages: 1. Occupational specialization. 2. Efficient utilization of resources. 3. Better control and coordination. Disadvantages: 1. Functional empires. 2. Difficulty in fixing accountability.
(b) Advantages: 1. Occupational specialization. 2. Efficient utilization of resources. 3. Better control and coordination. Disadvantages: 1. Functional empires. 2. Difficulty in fixing accountability.
CASE 1
Due to spread of COVID-19 pandemic, employees of almost all the companies were working online from their homes. In 2022 when most of the companies called them back to their office and started working offline, 'Taty Software Ltd.' still asked their employees to work from home. Because of this, employees of Taty Software Ltd. were feeling bored, hence for recreation they formed a cricket-club. They started meeting every Saturday and Sunday on a ground near their office building.
(i) Identify and state the type of organisation formed. (ii) State any two advantages and two limitations.
(i) Informal Organisation.
(ii) Advantages: Faster communication and fulfillment of social needs.
Limitations: Spreading of rumors and potential to resist change.
(ii) Advantages: Faster communication and fulfillment of social needs.
Limitations: Spreading of rumors and potential to resist change.
CASE 2
Delegation and Decentralisation
SilverLeaf Publishing House was known for producing popular children’s storybooks. The company had a well-defined organisational structure where the editor-in-chief supervised different departments such as content development, illustration, marketing and printing. Every employee clearly knew their duties and whom they had to report to. Work moved through proper channels and decisions were taken according to the official hierarchy.
However, something interesting often happened during lunch breaks. A group of employees from different departments regularly gathered in the cafeteria to discuss ideas for new stories and book designs. These casual conversations sometimes led to creative ideas that were later developed into successful books. For example, one illustrator suggested a new comic series during an informal discussion with a writer and a marketing executive.
At the same time, these informal interactions sometimes created problems. Occasionally, employees started sharing unofficial information or rumours about new projects before any formal announcement was made. This sometimes caused confusion among other employees.
a) Identify the two types of organisations discussed in the above case.
b) Explain one advantage and one disadvantage of the informal organisation highlighted in the case.
b) Explain one advantage and one disadvantage of the informal organisation highlighted in the case.
a) Formal and Informal Organisations.
b) Advantage: Faster communication and creative problem-solving. Disadvantage: Spread of rumors and confusion.
b) Advantage: Faster communication and creative problem-solving. Disadvantage: Spread of rumors and confusion.
CASE 1 (Delegation)
Preeti started her own cooking channel on Youtube 'Mood Art'. As her subscribers increased, she was not in a position to manage everything on her own. She hired Rahul and Riya to help her with filming, editing, lighting and content research. She granted authority to them to operate within prescribed limits. She was thus, able to use her time on high priority activities like developing new recipes and content development etc. As a result, Rahul and Riya were given opportunities to develop and exercise initiative. Preeti was now able to focus on objectives and meet the target of achieving a subscriber base of one million in six months.
(a) Identify the concept of management used. (b) Explain any five points of importance.
(a) Delegation.
(b) Importance: 1. Effective management. 2. Employee development. 3. Motivation of employees. 4. Facilitation of growth. 5. Basis of management hierarchy.
(b) Importance: 1. Effective management. 2. Employee development. 3. Motivation of employees. 4. Facilitation of growth. 5. Basis of management hierarchy.
CASE 3 (Delegation)
StarGlow Electronics recently opened a large showroom in a busy commercial area of the city to sell televisions, refrigerators and other home appliances. The company appointed Mr. Rahul Mehta as the Store Manager to handle all the activities of the showroom. Rahul was responsible for supervising sales staff, maintaining product inventory, ensuring proper customer service and preparing sales reports for the head office.
As the showroom became popular, the number of customers increased rapidly. Rahul soon realised that it was becoming difficult for him to personally supervise every activity in the showroom. Important tasks such as managing stock, attending customer complaints and guiding sales staff required constant attention.
To handle the increasing workload effectively, Rahul appointed Ms. Ananya as the Customer Service Supervisor. She was given the authority to guide customer service executives, resolve customer complaints and monitor service quality. Ananya also had to regularly report the progress of her department to Rahul.
After assigning these responsibilities, Rahul found that he could focus more on planning promotional activities and building business relationships with suppliers. The showroom started functioning more smoothly and customer satisfaction improved significantly.
(a) Identify the concept followed. (b) Explain any two points of importance.
(a) Delegation.
(b) Importance: 1. Reduces workload of manager. 2. Enhances employee development/motivation.
(b) Importance: 1. Reduces workload of manager. 2. Enhances employee development/motivation.
CASE 1 (Decentralisation)
FreshMart Retail Ltd. is a large supermarket chain with stores in many cities across India. In the beginning, all important decisions such as pricing, product selection and promotional schemes were taken by the head office. Store managers had to wait for approval from the headquarters even for small decisions. This often caused delays in responding to local customer needs.
After observing these difficulties, the top management decided to change its approach. It allowed store managers in different cities to take certain decisions according to the needs of their local markets. For example, managers in coastal areas were allowed to stock more seafood products, while stores in residential areas focused more on daily household items. Store managers were also permitted to organise local promotional activities during festivals celebrated in their regions.
This arrangement improved the speed of decision-making and helped the stores better satisfy the needs of customers in different locations. Employees at the store level also felt more motivated as they were trusted with greater responsibility.
(a) Identify the management concept discussed. (b) Explain any two points of importance.
(a) Decentralisation.
(b) Importance: 1. Quick decision-making. 2. Relieves top management of routine tasks.
(b) Importance: 1. Quick decision-making. 2. Relieves top management of routine tasks.
© 2026-27 Business Studies Master | Authored by Rathin Kumar Bardhan
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