Business
Definition
Business
An organization that uses resources to meet the needs of customers by providing a product or service that they demand.
Organizational structures
Definition
Organizational Structure
The formal arrangement of how roles and responsibilities are divided in an organization.
Organizational structures can be formal or informal:
- Formal structures are deliberately planned and documented.
- Informal structures are unplanned and emerge naturally over time.
Hierarchical structures
An organizational structure where power and responsibility are clearly defined and distributed in a top-down manner.
Hierarchical structures have:
- Multiple layers of management.
- Clear lines of authority and communication.
- Defined roles and responsibilities for each level.
Digital Systems in Businesses
Most modern businesses utilize digital systems such as:
- Office Automation Systems
- Digital systems that organize and process business and office data.
- They allow for interdepartmental communication, data sharing, visualizations, etc.
- Transaction Processing Systems
- Automated digital systems that process and manage transactions.
- They track and validate sales and resources.
Business Diversity
Definition
Diversification
Growth strategy in which businesses enter new industries.
There are four main types of diversification:
- Horizontal: Adding services that are complementary and related to the existing services of the business.
- Vertical: Expanding into areas that are related to current operations, but at different points along the production or distribution chain.
- Conglomerate: Adding services completely different and separate from existing operations.
- Concentric: Adjusting existing services to satisfy demand.
How can businesses balance the need for profitability with ethical considerations in diversification and inclusion?
