Case study 1
17a) ABC currently has a divisional organization structure
b) Divisional organization structure is not suitable for this organization as it is a small
business with just 3 product categories. Divisional organization restricts movements of
employees from one product division to another. As a result every employee does not have
sufficient knowledge about all the products of the organization. Moreover this structure does not
allow efficient employees to take over work pressure in another division. For instance in the
sportswear division, Andy is the department manager but he has to look after the liaison with
individual customers as his team members are comparatively new and inexperienced. The result
is that Andy is pressed due to paucity of time. If the divisional structure did not exist then Andy
could have taken the help of other team members who are experienced in Customer handling.
Thus for this organization divisional structure is causing decrease in productivity due to barrier
in the flow of skills and experience from one division to another.
C) the most suitable organization structure for this organization would be the functional
organization structure. Since the company is looking forward to expand the functional
organization structure will help them to create efficiency. Each geographical area can have
marketing, sales, production department and each department will handle all three products. This
will help the company as there will be better utilization of resources and employees efficient in
one department can extend their skills to all three products.
18) Leadership styles need not be rigid. A person in authority can don the hat of various
leadership styles depending on the situation. According to the leadership cycle model a leader
can be in the telling, selling, participating and delegating styles of leadership. In the telling phase
the leader uses one way communication to instruct the employees on the task that needs to be
performed and how it is to be performed. In the selling phase the leader starts involving the
employees to provide them socioeconomic support. In the participating phase the leader provides
less task behavior and more relationship behavior. In the delegating phase the leader mostly
monitors the situation.
In Andy’s situation I believe he should be in the telling phase of the leadership cycle as his team
members overrides his instructions to maintain customer liaison. In order to be an effective
leader Andy must be able to direct his employees to perform their task and instruct them on the
process. Once he accomplishes acquiescence and results he can move on to the next phase.
Case study 2
19 i) one of the major factor contributing to the survival of the sportswear shop is that 5years
back it was a vibrant shopping hub. Thus footfall must have been huge and the shop must have a
loyal set of customers who kept returning even after the surrounding shops turned into vehicle
maintenance and support services store. It might be possible that a customer of vehicle
maintenance shops drops by to the sportswear shop while they are waiting for their vehicle to be
serviced. For vehicle Sports enthusiasts it is a great experience to come and shop here while
getting their vehicle serviced. This sportswear shop is customer of ABC, and since ABC is a well
known brand customers might come here looking for it. Another reason for its survival might be
the price cuts that were offered for their popular products.
ii) Strategic planning
The company might have had a great start but five year down the line its profits are decreasing.
They should have considered moving their location when the surrounding shops turned into
vehicle maintenance shop. The rental might be more competitive here but moving to the vicinity
where there are other shopping centers could have increased the footfall. The shop could also
consider expanding their product line which can increase the sales volume.
Case study 3
20 a) environmental factors that could have caused close down of the power station are as
follows:

Tremendous pollution could have contributed to the closing down of the power station.
Operating a power station leads to production of steam, gases like carbon dioxide,
sulphur dioxide and harmful chemicals like mercury and heated water. Heated water can
change the temperature of surrounding water bodies when released into the streams and
thereby upset the ecosystem. Mercury in the soil leads to a number of heart diseases and
carbon dioxide is a known pollutant that causes innumerable diseases.

Excessive pollution could have lead to massive awareness among people and the
government could have forced the close down due to its negative environmental impact

Cost of wires required for the setting up of transmission lines could have gone up. As a
result the cost of maintenance could have gone up.

Cost of transportation for the transport of coal from the coal field to the power station
could have gone up

Economy might have been facing a slow down, there might be inflation or a number of
factors could have caused the labor charges to go up
b) The impact of pollution could have wrecked havoc on the community. Rising rate of heart and
respiratory ailments can be directly attributed to the operation of the power plant and the release
of harmful chemicals. Government decision to shut down power plants could have caused most
of the residents to shift owing to the lack of any other employment opportunity.
c) A vegetable farmer is depended on his produce. Power plants are known to release mercury in
the ground and cause contamination of ground produces. Mercury in vegetables is a major
concern among the health departments as it can contribute to serious problems including
paralysis and damage to the nervous system. Thus it affects the business of a vegetable farmer.
Moreover as it is a dying town and the population has shrunk vastly, the business of the farmer
has also decreased.