Read the following case study and answer question.

Sumit and Rachit are running a company processing coffee powder with a unique name 'Mad over Coffee'. It has a widely established market because of its excellent quality and distinct flavours. They don't have too many competitors in the market. As a result, they are in a position to keep the price of their products high. But the company is not providing after sales service. It doesn't take feedback from its customers. They soon realised this and bounced back. They appointed Raghav, a young energetic, as marketing manager. Raghav suggested diversification and expansion of staff. They added new flavours to their existing product range. They also ventured into tea processing, cocoa powder, and protein mix.

For this, he estimated the additional manpower requirement and finally after completing the staffing process, he managed to get a good team of sales personnel. He modified their packaging, making it more attractive and reusable. They started providing more details about their products on their labels. To promote their sales they started offering extra quantity (20% extra) in each pack.

A variety of programmes were designed by him to promote or protect the company's image and its individual products in the eyes of public.

They started advertising their products on TV and Social media.

For diversification , the company ventured into more products like tea, cocoa and protein mix. Which organisational structure is suitable for them ?

Divisional structure

The correct answer is option (1) : Divisional structure

For a company that has ventured into more products like tea, cocoa, and protein mix through diversification, the most suitable organizational structure would often be:

• (1) Divisional structure

A divisional structure allows different product lines or divisions to operate semi-autonomously, which is typically well-suited for a company diversifying into various product categories.

Each division can focus on its specific product line, with dedicated resources and teams, while still benefiting from central coordination and support. This structure aligns with the needs of a diversified organization like the one described in the case study.