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Business AS AQA

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  1. 1-1-the-nature-and-purpose-of-business as
    3 主题
  2. 1-2-forms-of-business as
    5 主题
  3. 1-3-the-external-environment as
    5 主题
  4. 2-1-management-and-leadership as
    3 主题
  5. 2-2-management-decision-making as
    4 主题
  6. 2-3-the-role-and-importance-of-stakeholders as
    3 主题
  7. 3-1-marketing-objectives as
    1 主题
  8. 3-2-understanding-markets-and-customers as
    5 主题
  9. 3-3-making-marketing-decisions as
    2 主题
  10. 3-4-the-marketing-mix as
    7 主题
  11. 4-1-operational-objectives as
    2 主题
  12. 4-2-operational-performance as
    1 主题
  13. 4-3-efficiency-and-productivity as
    3 主题
  14. 4-4-quality as
    1 主题
  15. 4-5-inventory-and-supply-chain-management as
    3 主题
  16. 5-1-financial-objectives as
    2 主题
  17. 5-2-financial-performance as
    6 主题
  18. 5-3-sources-of-finance as
    3 主题
  19. 5-4-cash-flow-and-profit as
    1 主题
  20. 6-1-human-resource-objectives as
    1 主题
  21. 6-2-human-resource-performance as
    1 主题
  22. 6-3-organisational-design as
    3 主题
  23. 6-4-human-resource-planning as
    4 主题
  24. 6-5-motivation as
    1 主题
  25. 6-6-improving-employer-employee-relations as
    2 主题
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Exam code:7131

Functional organisational design

  • This is the most common model of organisational design

  • Employees are arranged into different functions that complete specific functions, such as finance, human resources or marketing

    • Employees are arranged according to their expertise, bringing appropriate skills, experience and qualifications to a particular area of the business

    • There is a danger that functional areas focus only on their own area of responsibility and lose touch with the objectives of the business as a whole

Organisation by function

Business organisation by function breaks a business structure up into its core functions, such as finance, marketing and human resources.
Organisation by function involves grouping workers according to the section of the business in which they work

  • Tesco operates a functional structure at head office level, with separate teams for HR, finance, logistics and buying

Product-based organisational design

  • The business is split into divisions based on individual products or product lines

    • Each division handles its own marketing, operations and finances. For example:

      • Unilever UK uses a product-based structure, with teams dedicated to categories, such as personal care, home care and food and drink brands

      • KitKat has its own team within Nestlé

  • It combines the functional areas of a business (HR, finance, marketing, sales) with a specialist team that operates inside the business

    • Each division handles its own marketing, operations and finances

A product-based structure

The organisational chart shows the CEO at the top, with production, marketing, and finance managers below. The managers of Products A and B are located at the bottom level of the organisational chart.
An example of a project- or product-based structure, where workers are grouped according to the project on which they are employed

Evaluating a product-based structure

Advantages

Disadvantages

  • Promotes cross-functional collaboration and communication

  • Allows for specialisation and expertise within each functional area

  • Enables efficient allocation of resources and coordination of multiple projects

  • All of the above increases efficiency and motivation

  • Can lead to conflicts over priorities and resources

  • Can create confusion over roles and responsibilities, particularly when multiple managers are involved

  • Requires a high degree of communication and coordination, which can be challenging

  • All of the above reduce efficiency and motivation

Regional organisational design

  • This structure is commonly found in businesses that are located in several different geographical locations — either national or international

    • Regional management and structures allow a business to respond effectively to the needs of customers in diverse locations

Organisation by region

Business organisation by region separates a business hierarchy into geographical locations — and each location has its own core functions, such as finance, marketing and HR.
Organisation by region involves grouping workers according to their location

  • For example, the BT Group has a regional structure with operations split across different parts of the UK to provide tailored telecoms services

Matrix organisational design

  • A matrix structure is a flexible organisational model where employees report to more than one manager — usually a functional manager (e.g. Head of Marketing) and a project or product manager (e.g. Project Leader for a new product launch)

  • Employees often work in project teams made up of staff from different functions (e.g. HR, finance, R&D)

    • Encourages innovation and faster problem-solving

    • Matrix teams can be temporary or long-term, depending on the business’s needs

Matrix organisation design

an-example-of-a-product-based-structure-AQA-A-level-business
An example of a product-based structure

  • GSK, a major UK pharmaceutical company, uses a matrix structure to run global drug development projects

  • A scientist might report to:

    • The Head of Research (functional line) and a

    • Project Manager for a specific vaccine or drug trial (project line)

  • This structure helps GSK coordinate between R&D, regulatory teams and regional market teams, speeding up innovation and delivery

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