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You are viewing ARCHIVED CONTENT released online between 1 April 2010 and 24 August 2018 or content that has been selectively archived and is no longer active. Content in this archive is NOT UPDATED, and links may not function.Editor’s Note: Does your company have an organizational structure that lends itself to success from an end user’s point of view? If not, then maybe it is time to evaluate the way you organize your business.
Extract from article by Matthew Yglesias
If GE can build jet engines, tidal energy farms, freight rail data systems, mining equipment, and medical devices, how is it that the world’s most valuable company can’t find the time to make a full line of personal computers and PC peripherals alongside its market-leading smartphones and tablets? The answer goes back to Apple’s corporate structure, which, though fairly common for a startup, is extremely unusual for an enormous company.
Functional Versus Divisional Structures
Any large organization needs to have an organizational structure.
There are two main ways to structure a business. You can build divisions that are built around particular lines of business or you can build functional groups that are built around particular kinds of expertise.