COMPANY STRUCTURE
Organizing structure is considered by many to be “the anatomy of the organization”, providing a foundation within which the organization functions”.
There can be different kinds of organization structure, and firms can change their organization structure by becoming more or less centralized.
Most organization have a hierarchical or pyramidal structure, with one person or a group of people at the top, and increasing number of people below them at each successive level. All the people in the organization know what decision they are able to make, who their superior (or boss) is (to whom they report), and who their immediate subordinates are (to whom they can give instructions). This structure is one of the simplest
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Marketers depend on marketing research, both formal and informal, to determine what consumers want and what they are willing to pay for it. Marketers hope that this process will give them a competitive advantage.
The four Ps are: * Product: Identifying consumer needs and wants in order to develop the product. The Product management and Product marketing aspects of marketing deal with the specifications of the actual good or service, and how it relates to the end-user 's needs and wants. * Pricing: This refers to the process of setting a price for a product, including discounts. The price need not be monetary - it can simply be what is exchanged for the product or service, e.g. time, or attention. * Promotion: This includes advertising, sales promotion, publicity, and personal selling, and refers to the various methods of promoting the product, brand, or company. * Placement or distribution refers to how the product gets to the customer; for example, point of sale placement or retailing. This fourth P has also sometimes been called Place, referring to the channel by which a product or service is sold, which geographic region or industry, to which segment (young adults, families, business people), etc.
These four elements are often referred to as the marketing mix. A marketer can use these variables to make a marketing plan. The four Ps model is most useful when marketing low-value
Organisations must organise a structure so that their objectives can be achieved. A company will have different departments and procedures with each one having a special function. All of these organised departments and procedures are linked so the company can run efficiently. For many organisation this can be very complex has they will have offices in international countries around the world.
Though it is obvious why understanding organizations is critical to business success, nevertheless it is worthwhile to review these reasons. The structure of a firm either enhances or hinders efficiency and productivity. In other words, how information flows and to whom, whether and how many parts of the work process is redundant, how clear and precise is the reporting structure, if and how new ideas and products are promoted - these and many more issues are obvious consequences of structure and profoundly affect the success of the business.
2. Place- Place is in regards to distribution, location and methods of getting the product to the customer. This includes the location of your business, shop front, distributors, logistics and the potential use of the internet to sell products directly to consumers.
Every organization was established to meet needs or goals, for example, to provide goods or services. Organizational structures may form in many ways; these were influenced by factors such as the purpose, size of the company or the complexity of the tasks it performs, and the external environment and culture. Moreover, the products, services or the location of the organization will also determine which structure was the best. The structure chosen will govern the way in which the organization operates and could occur either positive or negative effects. Below are some types of organizational structure that usually see.
One of the first things you can find when researching a company or an organization is their organizational chart. The structure of an organization is what provides guidance to all staff by laying out the reporting hierarchy and the flow of work within the organization. To achieve optimum organizational performance, proper organizational structure is needed. The historical starting place of organizational structure theory came from Max Weber. According to Tompkins (2016) Max Weber’s bureaucratic theory states that the operation of large organizations would be impossible without bureaucracy. According to Weber bureaucratic co-ordination of activities and administrative rationality is the primary distinction of a modern organization. Tompkins (2016) also brought forward that Weber’s focus on compartmentalizing functions, on limiting the power of offices, clarifying
Organizational structure provides the framework of an organization determining how roles and responsibilities are delegated throughout the different levels of the organization. It has been defined by some as the looking glass through which coworkers see their organization and its surrounding environment while others have described structure as the backbone of the organization. In this memo, I will briefly discuss the importance of organizational structure, give examples of some major organizational structures, and provide factors influencing the choice of organizational structure.
A corporations is very different from sole proprietorships and partnerships. Corporations are owned by shareholders and are considered to be an independent legal entity. Corporations have very expensive administration fees and very complex tax and legal requirements. The main advantage of corporations is that the shareholders are not responsible for the debts of the company. They are only liable for their investment into the company. Corporations can also sell stock to raise any capital that is needed for the business. Corporations file a separate taxes from that of the owners. Owners of a corporation are taxes on the profits that the receive through salaries, dividends and bonuses. One major disadvantage of a corporation is that they are very costly and time consuming to start and maintain. Sometimes corporations can be subjected to double taxes through taxes on profits and then taxes on dividends. Corporations require an increased amount of paperwork and record keeping. A final disadvantage of this kind of business structure is that the business operations are handled by the managers and the board of directors who can cheat the owners of the business (Parrino et al., 2012).
'Place ' is concerned with various methods of transporting and storing goods, and then making them available for the customer. Getting the right product to the right place at the right time involves the distribution system. The choice of distribution method will depend on a variety of circumstances. It will be more convenient for some manufacturers to sell to wholesalers who then sell to retailers, while others will prefer to sell directly to retailers or customers.
There are multiple structural variations that organizations can take on, but there are a few basic principles that apply and a small number of common patterns. The following sections explain these patterns and provide the historical context from which some of them arose. The first section addresses organizational structure in the twentieth century. The second section provides additional details of traditional, vertically-arranged organizational structures. This is followed by descriptions of several alternate organizational structures including those arranged by product, function, and geographical or
I work for a small company that sells auto parts to automotive stores all over the United States. Based on my observation, I can say that our organizational structure is centralized
Organizing: Arranging and structuring work to accomplish organizational goals. Organizational Structure is the formal arrangement of jobs within an organization. Organization chart: Organization structure shown visually in the form of a chart. Organizational Design: A process that involves decisions about six key elements : Work specialization, Departmentalization, Chain of command , Span of control, Centralization and decentralization and Formalization.
However, there are few reasons that each organization should support or adopt organizational structure. For example, structure give members clear guidance for how to retain order and get rid of disagreements, it helps bonding members together. In conclusion, it is suggested that it is very important to deal or develop the structure early in organizations’ development.
Organisational structure affects organizational action in two big ways: First it provides a foundation where all the procedures and routines will take place and secondly it determines the employee’s role in the company. In simpler companies there is no need of a structure as the owner manages himself but when a business expands the need of a structure is important as the responsibilities are allocated differently, the individuals know their role and therefore the managing system will be more efficient and precise and in case the company employs new people there is need of a job description.
Place (Distribution): Companies can either handle distribution through a single channel or a combination of strategies such as selling directly to consumers through a company field sales force, operating through independent intermediaries at the local level, or depending on an outside distribution system that provides regional or global coverage (Czinkota and Ronkainen, 1996). (p.113) All companies have to catch the eyes of the consumer because it will be easy to sell the product, if the customers feel attraction to the product they would buy it. So it will be a good distribution or “place” strategy.
Product – Product can be defined as the goods or services which is made to fulfil customer’s demands and needs. While making the product company should take care about its quality and features must be according to the customer’s needs to satisfy them.