Page 9 - Week 2

Organisation by Product or Service

This structure is grouping of activities by the product or

service provided.

Each function has its own specialist product or services.

There could also be different geographic or divisional

areas too.

This allows areas to grow or be reduced based on

demand, such as closing an area such as Asia.

There is still a need to liaise with other parts of the

organisation.

There still would be the traditional Finance, marketing,

Information Technology and Human Resource functions.

As organisations operate in different countries, international and global – there is the challenge of
consistency of brand and approach as well as the need to understand the country your operate in. This

has challenges of language, time and communication including use of compatibility of technology.