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Groupings - Coggle Diagram
Groupings
Functional
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This is the traditional method of organising a firm into departments based on their core activities such as marketing or finance. This means that staff with similar expertise work together.
Customer grouping
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This is when an organisation divides its operations by types of customer. It may divide its customers into:
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Place/territory grouping
Advantages
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Communication is better, for example with different languages or cultures
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This is common among large multinationals. This is where the organisation divides its operations by geographical area.
Technological grouping
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This is where the organisation divides its operation by the type of technology they require. It can often be used in the manufacturing industry where departments are created based on the stage in the production process such as design or welding
Product/service grouping
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This is when an organisation is divided into divisions based on a product they make or a product range.