Business Studies > Principles and Functions of Management > Organising

'Nurata Ltd.' is a leading manufacturer of clothing in India, known for good quality casual wear as well as formal wear for children. The company is earning good profits and now wants to expand its business by entering into the business of electronics and home appliances too. The management decided to create separate business units, where each unit head would be responsible for a specific product category and for its performance. All key functions, such as marketing, finance, production, etc. would be handled within each unit.

(a) Identify the organizational structure adopted by 'Nurata Ltd.' on expansion of its business.

(b) State any two advantages and one disadvantage of the organizational structure identified in (a) above.