Company Structure

Important Vocabulary

Autonomous: Independent, able to take decisions without consulting a higher authority
Decentralization: Dividing an organization into decision-making units that are not centrally controlled
Function: A specific activity in a company, e.g. production, marketing, finance, human resource management
Hierarchy: A system of authority with different levels, one above the other
Line authority: The power to give instructions to people at the level below in the chain of command
Report to: To be responsible to someone and to take instructions from him or her
Subordinates: People working under someone else in a hierarchy
Industrial belt: An area with lots of industrial companies, around the edge of the city
Wealth: The products of economic activity
Productivity: The amount of output produced (in a certain period, using a certain number of inputs)
Corporate ethos: A company's way of working and thinking
Collaboration: Working together and sharing ideas
Insulated or isolated: Alone, placed in a position away from others
Fragmentation: Breaking something up into pieces

[ finance | marketing | production (or operations) ]

A factory working at full capacity - Production
A large advertising budget - Marketing/Finance
A large sales force earning high commission - Marketing
A standard product without optional features - Production
A strong cash balance - Finance
A strong market share for new products - Marketing
Generous credit facilities for customers - Marketing
High-profit margins - Finance
Large inventories to make sure that products are available - Production
Low research and development spending - Finance
Machines that give the possibility of making various different products - Production
Self-financing (using retained earnings rather than borrowing) - Finance