Product and Geographic Departmentalization Essay

est for a company managers argon faced with several decisions/dilemmas. The following should be considered The products they produce Who their customers atomic number 18 Where their customers argon set(p) Once the higher up considerations has been interpreted, a manager can thusly look at the advantages and disadvantages to the different display cases of departmentalization. Two types of departmentalization are product and geography. proceeds departmentalization is when a company is organized by specific products. Take a look at 3M Corp they make both consumer and industrial products. each(prenominal) of 3M Crops products operate under different divisions (Griffin, 2013). For example their Post-it and Scotch Brite brands could be located in the similar building, but do not have the same managers or staffing resources. Basically the mangers and staff for both brands are coexisting with no business interaction. This type of departmentalization can also apply to retail stores. ne arly retail stores are broken into different departments. The advantages of product departmentalization areAllows slew to specialize in sensation area of expertise Makes it easier to assess surgical procedure Makes decision making faster The disadvantages of product departmentalization are Duplication of functions Coordination across different product departments Limited view of organizational goals The above advantages and disadvantages taken from (Zararain, 2012) Geographic departmentalization is creating departments in the geographical areas they service. Coca-Cola is a company that operates using geographic departmentalization.They have 6 operating regions Eurasia & Africa, Europe, Latin America, North America, Pacific and Bottling Investments in addition to Corporate (Unknown, 2011). The advantages of product departmentalization are Effective and efficient management. Reduces cost by locating organizational resources closer to customers The disadvantages of product depart mentalization are Duplicates functions Functions are dispersed, therefore control cannot be exercised effectively Isolates organizational areas from one an another(prenominal).The above advantages and disadvantages taken from (Zararain, 2012) I feel managers are challenged to try and decide what departmentalization type will best suit their companys needs. Just because one fits today, that may not be the case in years to come. A manager may need to revisit the different departmentalization types and pick a new one that best fits the companys structural needs. detect Only two of the five-departmentalization types have been discussed. For more information on the other types please refer to page 219, chapter 7 in Business.