An example of a market based structure
ZIMSEC O Level Business Studies Notes: Market based organisational structure
- This is where the organisation’s divisions, operations, duties and positions are based markets, market segments, industry or customer types
- For example a large clothing store with different departmental heads based on customer sex (Male or Female)
- The organisation might first segment their market based on a variety of criteria (age, sex, demographics, income etc)
- A department is created for each segment/market
| Advantages | Disadvantages |
|---|---|
| Focus is on customer needs and wants | Complicates coordination |
| Develops expertise in handling their type of customer | Customers can overlap. Female partners may buy clothes for their male partners for example |
| Can encourage healthy competition among departments | Department units focus on their own goals instead of organisational goals |
| Is flexible |
To access more topics go to the O Level Business Notes page.
