Organisational structure

Functional:

• best for smaller or simpler businesses

• benefit = specialisation and efficiency

• drawback = poor communication between departments

Product-based:

• best for businesses with many products

• benefit = focus on each product

• drawback = duplication and therefore higher costs

Regional:

• best for businesses in different locations

• benefit = responds to local market differences

• drawback = inconsistency between regions may occur

Matrix:

• best for project based businesses

• benefit = teamwork and flexibility

• drawback = confusion from having multiple managers