The document discusses different business level structures used to organize business units within companies. It describes functional structures which group people by expertise, geographic/customer structures which group units by location or type of customer, and matrix structures which combine elements of functional and geographic/customer structures. Examples are given of companies in hospitality, technology, and construction industries and how they organize their business units using these different structures. The structures aim to improve coordination, flexibility, and ability to serve diverse markets as companies expand.

1. Business Level Structures
Presented by:
Somtapa Chatterjee (163902015)
Sumedha Biswas (163902019)
Anubhab Mukherjee (163902009)
Abhimanyu Singh (163902016)
Shivaji Saha (163902014)

2. Business-level Structure
• methods of organizing individual business units, often called divisions
• these units is as separate operating companies
as organizations diversify and form multiple operating companies, they
need to create a corporate - level structure to tie these separate
companies together

3. For example: Yum! brands having two or more business units using
different business level structures
Unit 1
Marketing
Accounting
Human
Resource
Unit 2
East
West
Mid-West

4. Types of Business - Level Structures
In the hospitality industry, the basic business - level structures include
• functional
• geographic/customer
• project matrix

5. Functional Structures
• people are put in groupings or departments based on their shared
expertise
• organized around the common activities or similar tasks performed by
individuals
• ideal for companies having a narrow product line, sharing similar
technology
• external stakeholders are relatively stable
• structure is centralized and most appropriate when a limited service is
offered

6. Hotels are most often functionally structured and usually have marketing,
human resources, food and beverage, accounting, and rooms
departments, at a minimum
General
Manager
Sales &
marketing
Sales
Manager
Human
Resource
Benefits
Training
Rooms
Front Office
Reservations
House
Keeping
Food and
Beverage
Food
Production
Restaurants
Room
Service
Banquets
Accounting
Controller
Purchasing
Systems
Functional structure for a hotel

7. GEOGRAPHIC & CUSTOMER BASED
STRUCTURES
• organize on the basis of expanding into new locations (geographic)
• common in hospitality industry, companies operate in diverse
geographic markets
For example, Pegasus Solutions, a global provider of hotel reservation
technologies, has divided its regional offices to cover North America,
Latin America, Europe/Middle East/Africa, and Asia -Pacific/India

8. Vice-President
Western Region
Sales & Marketing
Operations
Eastern Region
Sales & Marketing
Operations
Administrative Support
(i.e., legal, research,
human resources,
finance. This varies by
firm)
Based On Region

9. • organization structures its major units around the characteristics or
types of customer (customer-based structure)
• market development by seeking out new customer groups
For example:
• a hotel chain may organize around economy and luxury lodging
• a foodservice firm might organize by institutional versus educational
clients
• a microcomputer company might organize its business around home -
user, business, academic, and mail – order customer groups

10. Vice-President
Economy
Travellers
Sales &
Marketing
Operations
Luxury Travellers
Sales &
Marketing
Operations
Administrative
Support
(i.e., legal, research,
human resources,
This varies by firm)
Based On Customers

11. Matrix Structure
• hybrid structure, combines some elements of functional structures,
geographic & customer based structure
For example, a construction company with functional departments could
form teams to carry out specific projects. Each team would have
individuals from the functional areas reporting to both a project leader
and their functional manager
• a transition stage between a functional form and other forms
• a complex form necessary for complex environments

12. • improve communications between groups, increase the amount of
information that can be handled, increases flexibility
Matrix Level Structure