3 organisation_business_departments

3 organisation_business_departments - tutor2u GCSE Business...

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tutor2u GCSE Business Studies Business Departments A business is normally organised by its functions, e.g. marketing department, accounts department and so on. This is because being grouped together allows the functions to benefit from specialisation and division of labour. This leads to lower unit costs and a greater efficiency. However it can mean that there is departmental rivalry Larger businesses might have a number of businesses within the whole company. This would be coordinated by a Head Office, where all the major decisions are made. Other ways of organising the business could be more appropriate for different types of businesses: f Product – the functions are organised around the product – so at a business like ICI, who are the UK’s leading chemical manufacturer, a product manager would have a team of functions who would answer to them, like accounting, marketing and production f Geographical – a hierarchy might be split according to different places that the product is sold
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This note was uploaded on 05/20/2010 for the course BUSINESS Business O taught by Professor N/a during the Spring '10 term at Open Uni..

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3 organisation_business_departments - tutor2u GCSE Business...

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