Product and Geographic Departmentalization Essay

est for a alliance passenger vehicles be faced with several decisions/dilemmas. The following should be considered The crossroads they produce Who their customers are Where their customers are locate Once the above considerations has been taken, a omnibus can then look at the advantages and disadvantages to the antithetic types of departmentalization. Two types of departmentalization are ingathering and geography. Product departmentalization is when a company is nonionic by specific carrefours. Take a look at 3M Corp they lay down both consumer and industrial products.All of 3M Crops products operate on under different divisions (Griffin, 2013). For example their Post-it and musical score Brite brands could be located in the same(p) building, but do not bear the same managers or moduleing resources. Basically the mangers and staff for both brands are coexisting with no business interaction. This type of departmentalization can excessively apply to retail stores. Most retail stores are broken into different departments. The advantages of product departmentalization areAllows people to specialize in single area of expertise Makes it easier to assess performance Makes decision making hurried The disadvantages of product departmentalization are Duplication of functions Coordination crosswise different product departments Limited put on of organisational goals The above advantages and disadvantages taken from (Zararain, 2012) geographical departmentalization is creating departments in the geographic areas they service. Coca-Cola is a company that operates using geographic departmentalization.They do 6 operating regions Eurasia & Africa, Europe, Latin America, North America, peaceable 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 appressed to customers The disadvantages of product departm entalization are Duplicates functions Functions are dispersed, then control cannot be exercised effectively Isolates organizational areas from one an other.The above advantages and disadvantages taken from (Zararain, 2012) I feel managers are challenged to try and mold what departmentalization type will best causa 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 morphologic needs. Note 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.