The document discusses different ways that organizations can group their activities and structure their divisions. It describes common functional areas like sales, marketing, HR, and finance. It also explains that organizations may divide according to product type, geographic regions, customer types, or production processes. Larger businesses often use a combination of these grouping methods.

2.  Certain activities or sections of an
organisation are grouped logically and then
assigned to managers.

3.  The organisation is divided into broad sectors,
each with its own specialty.
 Main functional areas
 Sales and Marketing
 Human Resources
 Finance/Accounts
 Operations/Production
 Research and Development

4.  As the range of products increases it may
become more practical to handle each type
of product in a separate division of a
company.
 Eg Virgin Group, EasyGroup

5.  Organisations group activities according to
regions or countries where they operate
 Used by multinationals
 Allows organisation to solve problems of
language and cultural barriers
 Eg Coca Cola – US Grouping, UK Grouping etc

6.  Particularly common when it is felt that
different categories of customers require
different treatments
 Usually found in the service sector
 Example: banks - personal and business
areas, department stores - ordinary staff and
personal shoppers

7. BM Unit 2 - LO1 7
 Used in the manufacturing sector where
different technological processes are involved
in a diverse range of products
 Scope for specialisation of the workforce and
simplified training within the same
manufacturing process

8.  Number of staff employed
 Size of market (number of customers)
 Range of products sold
 Range of customers served
 Technology available
Larger businesses will usually use a
combination of the groupings above

9.  Research and present your findings on a
PowerPoint of the grouping and structure of
any of the following businesses
Next
Whitbread
Coca-Cola

10.  Research and present your findings on a
PowerPoint of the grouping and structure of
any of the following businesses
Next
Whitbread
Coca-Cola