Professional Documents
Culture Documents
Short term:
1. Delay in launch of products
2. Decrease in profits earned
3. Communication gap
Yes, structural change is required because the current functional structure is not efficient to
stay competitive enough to the changing market scenarios for NIL. New products launched
by NIL are delayed, and this delay may be because of the current functional structure, where
communication gap exists and complex hierarchy makes it difficult to get
approvals/clearances at every stage.
NIL can go for a divisional hierarchy (two divisions of food and chemical) for Operations and
sales department and continue with centralised HR and Finance department for both
divisions. A dedicated team for food and chemicals will enable NIL to better understand the
market (sales division) and launch products at a faster pace (operations department). The
sales team can be divided based on geographical location. Different demographics have
different culture and requirements. Geographically dedicated sales team can ensure better
analysis of market requirement, thus helping operations team to develop better competitive
products.
External problems :
1. Deregulation of the defence sector has caused an influx of many new competitors.
2. Private sector clients demand high quality products at competitive price
Internal Problems :
1. Delay in launch of new products
2. Difficulty in understanding requirements of customers by sales person as they are
based at one location and they troubleshoot problems at various location