Output oriented divisionalized forms l.jpg
This presentation is the property of its rightful owner.
Sponsored Links
1 / 18

Output-Oriented Divisionalized Forms PowerPoint PPT Presentation


  • 108 Views
  • Uploaded on
  • Presentation posted in: General

Output-Oriented Divisionalized Forms. Product Line Departmentalization. Product line structure is a design that groups similar or related products together. . Insurance Company by Product Lines. Product Line Divisions with Corporate Support Units. This structure provides centralized support

Download Presentation

Output-Oriented Divisionalized Forms

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Output oriented divisionalized forms l.jpg

Output-OrientedDivisionalized Forms


Product line departmentalization l.jpg

Product Line Departmentalization

Product line structure is a design that groups similar or

related products together.


Insurance company by product lines l.jpg

Insurance Company by Product Lines


Product line divisions with corporate support units l.jpg

Product Line Divisions withCorporate Support Units

This structure provides centralized support

functions/services for the needs of several different

product lines.


Levi strauss product lines with corporate support units l.jpg

Levi Strauss – Product Lines with Corporate Support Units


Product team structure l.jpg

Product Team Structure

Product Development Teams

● ●

● ●

PTM

● ●

● ●

PTM

● ●

● ●

PTM

PTM -Product Team Mgr

●-Functional specialists

Product Division

Product Division

Product Division


Product team structure7 l.jpg

Product Team Structure

The Product Team structure is a cross between the

product division structure where support functions are

centralized and the multi-divisional structure where

each division has its own support functions.

It is used primarily where the focus of the industry is

on product customization. The functional orientation of

specialists is seen as not in the best interests of the

product divisions.


Process departmentalization l.jpg

Process Departmentalization

Process structure is a design that group similar

organizational processes together. These processes

are usually technologically-based, but not always.


An example process departments l.jpg

An Example – Process Departments

A metalworking company


Customer departmentalization l.jpg

Customer Departmentalization

Customer-based structure is a design that groups similar

customer groups together.


Geographic territory departmentalization l.jpg

Geographic/Territory Departmentalization

Geographic or territorial structure is a design that groups

similar/localized regions together.


A geographical division firm l.jpg

A Geographical Division Firm


Wal mart s corporate structure l.jpg

Wal-Mart’s Corporate Structure

A geographically-based set of divisions, including international


Advantages of divisional forms l.jpg

Advantages of Divisional Forms

  • Evaluate departments as autonomous profit centers

  • Facilitate coordination between functions for rapid response

  • Add flexibility to a firm’s structure

  • Focus on client needs

  • Develop broadly trained managers


Disadvantages of divisional forms l.jpg

Disadvantages of Divisional Forms

  • Increase coordination problems between specialized functional/divisional areas

  • Lead to decreased communication between functional specialists across divisions

  • Contribute to a lack of clarity of functional area responsibilities and a duplication of services


Strengths of divisional forms l.jpg

Strengths of Divisional Forms

  • Suited to fast change in unstable environment

  • Client satisfaction because product responsibility & contact points are clear

  • High coordination across functions

  • Units adapt to differences in products/processes/territories

  • Best in large organizations

  • Best when several product/services are offered


Weaknesses of divisional forms l.jpg

Weaknesses of Divisional Forms

  • Lose economies of scale in functional departments

  • Poor functional coordination across division lines

  • Lose in-depth competence & technical specialization

  • Integration & standardization across division lines is difficult


The conglomerate design multi divisional sbu l.jpg

The Conglomerate Design(Multi-Divisional, SBU)

Pearson PLC, a British firm, uses a conglomerate form

to manage several unrelated businesses. Conglomerate

forms usually result from unrelated diversification, and

act as a “holding company.”


  • Login