In many aspects a company is like a living organism, with various areas performing various functions to continue the whole structure running properly. Read on to read more.
Any business is set up as a way to make a revenue. This means that they will be offering some kind of product or service for the consumers to buy. To help offer a service or a good that the buyers will actually buy, the business first is required to know what goods are needed on the market. This is done primarily by accumulating information on the relevant customers, a task conducted by the marketing department which takes an invaluable location in the functional organizational structure. Smaller companies might outsource these tasks to marketing businesses, but bigger ones will have departments committed to this, like the Nestlé marketing department.
Research and Development, or R&D for short, is amongst the most essential departments in a company hierarchy. The people working in this department are in charge of evolving fresh offerings or goods that the firm can then sell on to the subscribers. Research and development departments at large companies, like Procter & Gamble research and development department, that sell a great deal of consumer goods can consist of hundreds of people! Unlike many other operation activities, research and development activity is not expected to make instant profit. In point, this procedure can sometimes take years, but it is something that businesses absolutely need certainly to invest in if they want to make a profit in the long term. One thing to consider is that the actual tasks performed by this department can vary significantly from one firm to the next – in accordance with what the firm provides to its customers, research and development can appear vastly different.
Managing a business may be a hard task, particularly if the firm is of a significant width. At every level you will find folks who are managing various departments and who are in charge of several tasks. These managers take a number of decisions that will affect the company in both short term and long term and they often opt the team organizational structure. At the top of the organizational structure of a company you will find what is understand as the board of directors, like the Telecom Italia board as an example. In countless ways they are like managers, but the decisions they take carry considerably more weight. The board of directors is headed by the chairman of the board, but they generally do not carry any executive power the way chief executive officer does. The members of the board always have an annual meeting during which they can vote on crucial decisions. There they can develop objectives and direction for the company and make an approximate plan as to how to attain these objectives.