Assume you are working in a medium sized local pharmaceutical company producing a wide

range of oral and intravenous medicines, working with functional structure. The company has a wide distribution network across the country and their major customers are hospitals and retailers. The company has been doing well in terms of sales and profit. The company is now planning to diversify from oral and I/V products to a) manufacturing and supply of surgical instruments, b) cosmetics and c) healthy nutritional supplements.

a. Should the company go ahead with the same functional structure? Why or why not?

Discuss the factors that influence the structure in this case.

b. Which departmentation you think will work the best in this case?