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LA Gear is an example of company that uses product departmentalization. Its structure is based on its varied product lines which include women’s footwear etc. Customer departmentalization - Grouping activities on the basis of common customers or types of customers. Jobs may be grouped according to the type of customer served by the organization.
A matrix organization. Matrix management is an organizational structure in which some individuals report to more than one supervisor or leader—relationships described as solid line or dotted line reporting, also understood in context of vertical, horizontal & diagonal communication in organisation for keeping the best output of product or services.
Departmentalization is the basis on which individuals are grouped into departments and departments into total organizations. Approach options include: Functional - By common skills and work task. Divisional - Common product, program or geographical location. Matrix - Combination of Functional and Divisional. Team - To accomplish specific tasks.
For example, new product development traditionally ranks as a tactical procedure. It gets strategic direction from top management, and uses operational departments like engineering and marketing to perform its task. But a new product development team would consist of people from the operational departments and often someone from top management.
For example, a company should not use the same system to build missiles as it uses to build airplanes, nor the same system to sell insurance as the one originally designed to sell magazines. However, it should be possible to modify an existing system to produce different sizes, varieties, or types of the same product or service.
Example of a functional hybrid organizational chart. An organizational chart, also called organigram, organogram, or organizational breakdown structure (OBS), is a diagram that shows the structure of an organization and the relationships and relative ranks of its parts and positions/jobs. The term is also used for similar diagrams, for example ...
Top management is located in the central office which acts to supervise and coordinate the divisions and develop overall strategies for the business. Throughout the second half of the 20th century, the M-form proved to be the best strategy for many large firms that wished to expand their product diversification and appeal to a wider consumer base.
Coca-Cola Enterprises was a marketer, producer, and distributor of Coca-Cola products. It was formerly the anchor bottler for Western Europe and most of North America.. Coca-Cola Enterprises' products included Coca-Cola, Diet Coke, Coke Zero, Sprite, Fanta, Capri-Sun, Dr Pepper, Chaudfontaine, Schweppes, [6] Monster and Relentless.