Company Structure
Courtesy/ free pik

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


Classifying the Strategies According to the Departments That Would Favor Them

[ 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

Extracted From

MacKenzie, I. (2002). English for Business Studies: A course for Business Studies and Economics students (2nd ed.). Cambridge University Press.

Previous articleWork and Motivation | Business Communication | Vocabulary
Next articleThe Three Sectors of the Economy | Business Communication | Vocabulary
Founder and Author at Superb Future. Babu is a student of Business specializing in Sales and Marketing Management. "Everyone is a marketer, whether you are a businessman or a homemaker."


Please enter your comment!
Please enter your name here