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?

Explanation

Neha must adopt divisional structure for her organisation, as it is formed on the basis of different products.
Divisional structure is suitable because of the following reasons:
(i) The organisation delas in more than one product.
(ii) Growth prospects are high.
(iii) There is a scope of diversification into different products and expansion to different territories.