Page 207 - Introduction to Business

CHAPTER 5 Managing and Organizing Business 181

EXHIBIT 5.6
Forms of Organizational Structure

Functional Organizational Structure Possible Divisional Organizational Structure
Coca-Cola Corporation
CEO CEO

Vice president Carbonated Juices and
Vice president Vice president Sports drinks Filtered water
production or soft drinks juice drinks
marketing finance division division
operations division division

Possible Matrix Organizational Structure
Pfizer Corporation

CEO

Vice president Vice president
research Vice president Vice president finance and
sales engineering
chief scientist accounting

Viagra
project manager Scientist Sales detailer Engineer Accounting
Project A A A A A

Zoloft
project manager Scientist Sales detailer Engineer Accounting
B
B
B
B
Project B
Celebrex
project manager Scientist Sales detailer Engineer Accounting
Project C C C C C

Network Organizational Structure

Athletic shoe
Manufacturers company Retailers
shoe design

Distributors

shoes, with distributors to ship the completed shoes, and with retail stores to dis-
play, advertise, and sell the shoes. Thus, the athletic shoe company is at the admin-
istrative hub of a network of other companies that make, distribute, and sell the
shoes. Somewhat similarly, a company might own a convention hall but then con-
tract out everything done in the hall, from event planning, to sale of concessions, to
janitorial services.

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