A.V.M.Ltd. set-up its electric appliances manufacturing factory in a backward area of Himachal Pradesh where subsidies are provided by the government and labour is available at cheaper rates.

A.V.M Ltd. was able to produce its products at low cost thereby generating enough profits in the first year itself. It was because of the fact that the limits of authority and responsibility of the employees were clearly defined and the activities of various departments were coordinated and integrated. The Production Manager of the company also came to know about the availability of raw material at cheaper rates from a vendor. For this he wrote a letter to the Managing Director of the company for getting sanction. But because of procedural delays in getting this sanction and procuring funds from the Finance Manger, the order could not be placed.

(a)Identify the type of organization that led to procedural delays and because of which the company could not get the advantage of procuring raw material at cheaper rates.

(b)State an advantage of the type of organization identified in

(a) above other than those discussed in the above case.

(c)Also, state any two values communicated by A.V.M Ltd. to the society.