‘Chaman Pharmaceuticals Ltd.’ is a company providing medicines all over the country. After establishing itself and making a name in the field of medicines, it decided to enter into the field of medical devices, baby care products and nutritional supplements. Each product category had a different head accountable for profits, revenues and costs. In case of poor performance of their product, the heads were held responsible. But as the heads of different product categories were different, conflict could arise among different heads with reference to allocation of funds. Also providing a separate set of similar functional heads for each product category increased expenditure.
(i) Identify and explain the type of organisation structure ‘Chaman Pharmaceuticals Ltd.’ had followed after entering into the field of medical devices, baby care products and nutritional supplements.
(ii) Also state any one advantage and any one disadvantage of the organizational structure discussed in the above para by quoting lines.
