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Describe four Divisional Structures!
• Divisional Structure
- An organizational structure composed of separate business units within which are the functions that work together to produce a specific product for a specific customer
• (Global) Product Structure
- Customers are served by self-contained divisions that handle a specific type of product or service.
• Market Structure
- Each kind of customer is served by a self-contained division
- Global market (customer) structure
o Customers in different regions buy similar products so firms can locate manufacturing facilities and product distribution networks where they decide is best.
• (Global) Geographic Structure
- Each region, country or area with customers with differing needs is served by a local self-contained division producing products that best meet those needs.
- Different divisions serve each world region when managers find different problems or demands across the globe.
- Generally, occurs when managers are pursuing a multi-domestic strategy
- An organizational structure composed of separate business units within which are the functions that work together to produce a specific product for a specific customer
• (Global) Product Structure
- Customers are served by self-contained divisions that handle a specific type of product or service.
• Market Structure
- Each kind of customer is served by a self-contained division
- Global market (customer) structure
o Customers in different regions buy similar products so firms can locate manufacturing facilities and product distribution networks where they decide is best.
• (Global) Geographic Structure
- Each region, country or area with customers with differing needs is served by a local self-contained division producing products that best meet those needs.
- Different divisions serve each world region when managers find different problems or demands across the globe.
- Generally, occurs when managers are pursuing a multi-domestic strategy
Flashcard info:
Author: Egregius
Main topic: BWL
Topic: Personalwirtschaft
School / Univ.: Universität Mannheim
Published: 11.03.2010