A garment company adds a new footwear department and starts selling in two new states to increase its customer base, sales and profit.
Which importance of organising is shown here?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Expansion and growth
Option (1) Expansion and growth — Correct. Organising lets a business add departments, product lines and new geographical territories. This helps to increase its customer base, sales and profit. The company adds a footwear department and enters two new states for this very aim.
Option (2) Adaptation to change — Incorrect. Here the structure and the relations between managerial levels are modified to suit changes in the business environment. The company is not reacting to a change; it is growing.
Option (3) Optimum utilisation of resources — Incorrect. Here the proper assignment of jobs avoids overlapping of work, so resources are not wasted.
Option (4) Effective administration — Incorrect. This comes from a clear description of jobs and duties. It avoids confusion and makes management easy.
NCERT (2026-27 Edition): “Importance of Organising … (vii) Expansion and growth: Organising helps in the growth and diversification of an enterprise by enabling it to deviate from existing norms and taking up new challenges. It allows a business enterprise to add more job positions, departments and even diversify their product lines. New geographical territories can be added to current areas of operation and this will help to increase customer base, sales and profit. …” |