Product Organisational Structure

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5 Terms

1
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Define a Product Organisational Structure

the business is grouped according to what the business sells or services provided

2
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Describe a Product Organisational Structure

managers report to the higher-ups by product type

3
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Explain a Product Organisational Structure

  • each product is treated as a profit centre

  • this allows the business to track trends in consumer demand and innovate accordingly

4
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Advantages of a Product Organisational Structure

  • focuses on customer satisfaction

  • innovation of product or services

5
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Disadvantages of a Product Organisational Structure

  • conflict between departments competing for customer sales

  • customer confusion when there is multiple product types