YTM 8-10

Expanding a company’s business operations into a new industry to produce new kinds of valuable goods or services.

Focusing only on existing products and markets.

Reducing the number of products a company offers.

Merging with a competitor in the same industry.

Entering a new business to create a competitive advantage in existing divisions.

Entering a new industry unrelated to current businesses.

Buying a company in a different country.

Focusing only on one product line.

The threat of substitute products.

The power of large suppliers.

The potential for technological innovation.

The level of rivalry among organizations.

Reduces rivalry

Increases the power of buyers

Prevents new competitors from entering the industry

Lowers the threat of substitutes

Low-cost and Differentiation

Focused low-cost and Focused differentiation

Low-cost and Focused low-cost

Differentiation and Focused differentiation

Driving the organization’s total costs down below the total costs of rivals.

Distinguishing an organization’s products from competitors on product design.

Serving only one segment of the market and being the lowest-cost organization.

Focusing on after-sales service to differentiate products.

How to group tasks into individual jobs

How to group jobs into functions and divisions

How to allocate authority and coordinate functions and divisions

How to set employee salaries

Organizational environment

Technology

Human resources

Product pricing

Talking

Delivering lectures

Observation

Performing the entrusted task and duties successfully

An organizational structure composed of all the departments required to produce goods or services.

A structure where each product line has its own division.

A structure focused on geographic regions.

A structure based on customer segments.

Difficult for departments to communicate with others.

Employees may become too specialized.

Managers may lose control over divisions.

Departments may compete for resources.

It limits innovation

It can lead to duplication of resources

It reduces managerial accountability

It prevents employees from specializing in product knowledge

Functional departmentalization

Product departmentalization

Customer departmentalization

Geographic departmentalization

Product departmentalization

Functional departmentalization

Market departmentalization

Matrix departmentalization

Groups employees based only on their technical expertise

Focuses on serving specific customer groups across multiple regions

Combines two forms of departmentalization

Eliminates the need for functional departments altogether

Make it difficult for employees to specialize in specific areas

Create confusion and conflict due to dual lines of authority

Eliminate cross-functional communication entirely

Lead to excessive centralization of decision-making