149 Figure 7.4
Figure 3.6:
Customer divisional structure Advantages of Customer Division • Allows greater customer focus.
• Clearly identifies key customers.
• Suitable to understanding customers needs.
• Develops managers who are customer concerned.
•
Improves corporate image Disadvantages of Customer Division • Does not foster coordination
between customers • Fosters politics in resource allocation
• Restricts problems solving to a single type of customer. iii)
Process Structure this is an organisational structure that is patterned according to the specific production processes performed. For example, a dry-cleaning firm has
different production processes, which include washing, drying, ironing and packing so also a tailoring firm has different production processes
which include cutting, sewing, finishing and packing. Figure 3.5 exhibits a diagrammatical illustration of process structure Figure 3.7: Process structure (Example of atypical Dry Cleaning Firm)
Managing Director GM. Institutional Products GM. Industrial Products GM. Household Products Managing Director Washing Drying Packing Ironing
