1. The Business Environment

2. Key words for P3 Hierarchy Line managers Subordinates Authority
Delegation
Empowerment
Span of control
Chain of command
Refers to the levels of management within an organisation
Are responsible for overseeing the work of other staff
Report to other staff above them in the hierarchy. They are accountable to their line managers for their actions
The power managers have over there subordinates
Is when managers entrust there subordinates to make decisions
A motivational tool managers use to motivate there employees
Measures the number or subordinates reporting to a line manager
is the path of authority along which instructions are passed, from the CEO downwards

3. Organisational structures
Businesses can be organised in 3 ways:
A functional structure is when the different departments of the business are organised by the different department specialism’s e.g. marketing, finance, human resources, customer service etc.
An area structure is when the business is divided into departments based on the different locations that the business operates in
e.g. America, Europe & Asia etc.
A product structure is when the business is divided into groups based on the different products or services they produce and sell
e.g. Iphone, Ipad, Iwatch, Ipod etc.

4. Examples:
Give students 1 minute to write down all there thoughts about this structure then share as a class.

5. Give students 1 minute to write down all there thoughts about this structure then share as a class.

6. Give students 1 minute to write down all there thoughts about this structure then share as a class.

8. How is McDonalds organised?
Lets look at how McDonalds is organised?
What are the advantages of this of this structure?
What are the disadvantages of this structure?

9. Functional Structure Advantages Disadvantages
Chief Executive
Board of Directors
Production
Marketing
Accounts
Personnel IT
Specialisation - each department focuses on its own work
It’s clear who is responsible for what
Everyone know their role
Advantages
Departments may have
their own agenda
Co-ordination may be complex
Decisions take longer
Disadvantages

10. How is Coca Cola organised?
Lets look at how coca cola is organised
What are the advantages of this of this structure?
What are the disadvantages of this structure?

11. Area Structure Disadvantages Advantages Can adapt to local customers
Coca Cola
Americas
Houston, Texas
Europe
Paris, London, Berlin
Asia Pacific
Hong Kong
Disadvantages
Can adapt to local customers
Encourages competition between functions
Advantages
Possible conflict between
local and central managers
2) Duplication of some services

12. How is Nike organised? Lets look at how Nike is organised
What are the advantages of this of this structure?
What are the disadvantages of this structure?

13. Product Structure Disadvantages Advantages
Hewlett Packard
Imaging and
Printing Group
Personal
Systems Group
Enterprise
Systems Group
HP Services
HP Financial
Services
Duplication of some services
May be too concerned with internal competition
Disadvantages
A focus on products
Encourages competition between functions
Divisions can be separate profit centre
Advantages

14. In what ways can organisational structures be more complex?
THINK PAIR SHARE
Organisational structures are not always as simple as splitting a business into functional, product or area structures.
In what ways can organisational structures be more complex?

15. Activity – Tesco research
Explain how Tesco has structured itself
Is it by function area or product?
Comment on:
the purpose of its structure
chains of command
spans of control
the hierarchy of the organisation
If you need help, use the textbook before using the internet

16. Tip: When you talk about each key term, you must give a defintion
Explain how the organisation has structured itself.
Comment on the purpose of its structure, chains of command, spans of control and the hierarchy of the organisation
Tesco is organised in a functional/area/product structure because…
You can see elements of other structures, such as.. because…
You can see the hierarchy of Tesco at…. The hierarchy is between….
The line managers of Tesco are…
The chain of command for Tesco is…
You can see the span of control because…
Another aspect of the chart is
The purpose of being organised in this way
Tesco Pass Machine
Hierarchy
Chain of command
Span of control
Tip: When you talk about each key term, you must give a defintion