Question

Prithvi Ltd. has many sections and departments. It is organised into these functional areas: • research and development (R&D) • global supply (including supply chain management, manufacturing and logistics) • sales and marketing • global support functions (providing, for example, legal, financial and HR services). These functional areas effectively run independently. However, company follows a structure in which all areas can contribute to the vast range of projects that are running at any one time. Prithvi Ltd. uses the skills and competencies of its people to bridge its functional areas. Currently, there are 4 ongoing projects viz. Trinity, Accolade, Earthen and ScribTech. Trinity project requires one research scientist, one logistics engineer, one legal advisor and a financial analyst. Accolade project requires 2 scientists, one junior HR manager, and one engineer from manufacturing department, two sales representatives and an accountant. Earthen project requires 3 scientists, production manager, marketing manager and a financial officer. ScribTech. project requires one data scientist, two sales representatives and one accountant. Draw the organization structure that you recommend for Prithvi Ltd. if the objective is to pinpoint project-profit responsibility.

Answer 1

    Prithvi Ltd.

Prithvi Ltd. has following projects: -

Trinity : - one research scientist, one logistics engineer, one legal advisor and a financial analyst     ,

Accolade : -2 scientists, one junior HR manager, and one engineer from manufacturing department, two sales representatives and an accountant.

Earthen : - 3 scientists, production manager, marketing manager and a financial officer.

ScribTech : - one data scientist, two sales representatives and one accountant.

In business the purpose is to create shareholders wealth. In other words, make profit. How to make profit. Profits can be made by increasing revenue by expanding market or decreasing costs.

The Management should focus on below mentioned points: -

-Target of revenue for the year tap the untap market and lower prices for existing market to capture customers.

-Study markets: - Target high paid salaried class people and businesses to provide service.

-Estimate profits in a year: - Do cost benefir analysis. Revenue should exceed cost under any circumstances. Rule No. 1 - Never lose money. Rule No. 2 - Never forger Rule No. 1.

Working capital planning should be made: - Consult with banks, negotiate interest rates and processing fee and read the fine print 10 times and ask bank manager clauses which didn't understood.

Tax planning should be made in order to pay less taxes.: - Palnning should be made for taking maximum deductions and exemptions possible.

In our case. all the four projects will create revenue and we are hiring team for it. What we can plan here to reduce cost. we can use people from one project to another project when they are idle, it will not only reduce costs but also engage people in different projects and they will also devolop new skills and their overall personality will increase and company will also get benefit.