A cosmetic firm has been in personal care business for the past 30 years. Now the firm wants to diversify its operations across India by venturing into the garment and footwear segments. The organizational structure suitable in this case would be:

Option 1 -> Line structure is a simple vertical hierarchy suitable for small organizations with limited operations, not for diversified multi-business companies. Option 2 -> Functional structure organizes by functions (HR, Finance, Marketing) and works best for single product line businesses, not for managing distinct product segments like cosmetics, garments, and footwear. Option 3 -> Divisional structure organizes by product divisions, allowing each business segment (cosmetics, garments, footwear) to operate semi-autonomously with dedicated resources and accountability. Option 4 -> Informal structure refers to unofficial relationships and cannot serve as the primary organizational design for managing large-scale diversified operations. Hence, Option 3: Divisional structure -> When a company diversifies into multiple distinct product lines or businesses, divisional structure is most appropriate as it allows each division (cosmetics, garments, footwear) to function as a separate unit with its own resources, strategies, and management, while maintaining overall corporate control and coordination -> correct