商务英语阅读3CompanyStructure.docx

Unit 3 Company Structure Unit Overview By studying this unit, you are expected to: ? learn the common types of company structure; ? describe a company’s structure; Text A company can be organized in many different ways, depending on its goals. The structure of a company will determine the ways in which it operates and performs. Here are some of the most common types of company structures. An Entrepreneurial Structure is most common in small companies. The company structure is totally centralized. This means that the leader, who is usually also the owner, makes all the key decisions. Communication between the leader and employees is via face-to-face conversations. It is particularly useful for new businesses as it enables the leader to control growth and development. A Functional Structure is best suited to large companies so that costs can be kept low. Employees perform specialized tasks. For instance, activities related to production, marketing and finance will be separated into three departments. However, the marketing department might include sales, advertising and promotions. This leads to an efficient business where costs are kept low within each department. However, it could also lead to a lack of communication within the company, making the company inflexible and slow to respond when changes are required. A Divisional Structure divides the company according to the type of work, region or product. Each division contains all the necessary resources and functions within it. An automobile company with a divisional structure might have one division for sports cars, another for subcompact cars, and a third for sedans. Each division is responsible for its products and has its own resources such as finance, marketing and equipment. This structure allows flexibility and a quick response to changes in the market place. A Matrix Structure groups employees by both function and product. A simple example of a matrix structure would be when individuals within the company a