XYZ Pharmaceuticals plans to launch a new line of affordable medicines. The top management defines long-term expansion plans, while different…

PART II – Descriptive Questions 1. (a) The corporate level decides what the business wants to achieve, the business level formulates plans, and the functional level executes them, with different types of relationships linking these levels. Functional and Divisional Relationship: In XYZ Pharmaceuticals, this relationship is evident as different product divisions such as generics and specialty drugs operate independently, each headed by a division head, with separate functional teams like marketing, HR and production under them. This independent structure ensures specialisation, clarity in roles and efficient management of diverse product lines, making it highly suitable for the organisation. Horizontal Relationship: Elements of horizontal relationship can be observed through coordination and idea sharing across teams at similar hierarchical levels. This promotes openness, transparency and innovation in the organisation. However, since the pharmaceutical industry is complex and highly regulated, this relationship is not dominant but still useful in encouraging collaboration and faster decision-making. Matrix Relationship: The company also follows a matrix relationship as it forms cross-functional teams for new product launches, where employees report to more than one manager (functional and project heads). This grid-like structure enhances flexibility, coordination and effective utilisation of resources, making it highly suitable for project-based work, although it may lead to complexity in reporting and authority.