Second summary

Most business organisations have a hierarchy consisting of several levels and a clear line of command. There may also be staff positions that are not integrated into the hierarchy. The organisation might also be divided into functional departments, such as production, finance, marketing, sales and personnel. Larger organisations are often further divided into autonomous divisions, each with its own functional sections. More recent organisational systems include matrix management and teams, both of which combine people from different functions and keep decision-making at lower levels.

Third summary

Most businesses are organised as hierarchies, with a clear chain of command: a boss who has subordinates, who in turn have their own subordinates, and so on. The hierarchy might be internally divided into functional departments. A company offering a large number of products or services might also be subdivided into autonomous divisions. Communication among divisions can be improved by the introduction of matrix management or teams.

Task 3. Talking Point 1

The text mentions the often incompatible goals of the finance, marketing and production (or operations) departments. Classify the following strategies according to which departments would probably favour them. Consult Speaking References p. 126–130.

The most common verbs for describing structure are:

consists of, contains, is composed of, includes, is made up of, is divided into

Model 1

The company consists of five main departments.

The marketing department is made up of three units.

The sales department is divided into two sections.

Other verbs frequently used to describe company organisation include:

to be in charge of, to support/to be supported by, to be accountable to, to be responsible for, to assist/to be assisted by.

Model 2

The marketing department is in charge of the sales force.

The marketing department is responsible for advertising, sales promotions and market research.

The five department heads are accountable to the Managing Director

▪ a factory working at full capacity

▪ a large advertising budget

▪ a large sales force earning high commission

▪ a standard product without optional features

▪ a strong cash balance

▪ a strong market share for new products

▪ generous credit facilities for customers

▪ high profit margins

▪ large inventories to make sure that products are available

▪ low research and development spending

▪ machines that give the possibility of making various different products

▪ self-financing (using retained earnings rather than borrowing)

Task 4. Writing 1

Write a description of a company you know, in about 100–150 words.

Task 5. Reading 2

Getting started

▪ Before reading the text, discuss in small groups what you know about the Apple Computer Company and their structure.

▪ What do you think about reorganisations that sometimes take place in companies? How often should they happen? Is it really necessary to reorganise companies? What for? Give reasons for your point of view.

▪ The text below is from a history of the personal computer industry by Robert X. Cringely, who is not convinced that the loose organisational structure of the Apple Computer Company and its regular reorganisations are a good idea.

▪ Read the text. Consult Vocabulary p. 143–144.

Somehow, early on, reorganisations – “reorgs” – became part of the Apple culture. They happen every three to six months and come from Apple's basic lack of understanding that people need stability in order to be able to work together.