organisational grouping

Question 1

functional grouping

Answer 1

this involves grouping an organisation into departments called functional areas, based on skills and expertise. The main functional areas are marketing, finance, operations and human resources.

Question 2

location grouping

Answer 2

this is grouping an organisation into geographical divisions. Each division will operate to serve customers in a particular location.

Question 3

product/service grouping

Answer 3

this is grouping an organisation into divisions that deal with different products or services. This is suitable for large conglomerate organisations, for example Virgin has different groups for Virgin Money, Virgin Atlantic and Virgin Media.

Question 4

technology grouping

Answer 4

this is similar to product/service grouping but involves businesses organising their activities according to the technology or production processes used.

Question 5

customer grouping

Answer 5

this involves grouping the organisations resources into divisions that each deal with a different type of customer. For example, a business might have a division for retail customers, wholesale customers and online customers.