A Well-Organized Acne Cleanser Firm | New Health and Fitness

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The company referred to in this article is nonexistent and its name is mentioned purely for the purpose of illustrating how functional organizational structure works in an industrial production company.

We have to understand how the functional organizational structure of a company should be created. For this, let us take the example of a company, an acne cleanser company, which manufactures and sells medicines for curing acne. Their goal is to sell the best OTC acne cleanser in the marketplace. The organization includes the production, marketing and finance of the company. The organization is responsible for the progress or regress of the company.

The tool that aids most in the marketing aspect of a business is advertising. Obviously, it is vital to make the public know about the product being sold. A company that sells acne cleanser should target teenagers since they are the part of the population that is most prone to acne breakouts. A good strategy might be to partner with established stores that cater primarily to teenagers. When teenagers see the acne products in their favorite stores, this may make them more likely to purchase the products. Other good promotional strategies include free gifts and discounted prices.

More focusing on advertisement is necessary for stores selling acne cleansers and other items for teenagers. Such stores where acne cleansers are sold should aim at advertising to as many teenagers as possible.

In order to thoroughly understand what important changes are needed to be made in a company?s production and thereafter in its sales strategies, can be achieved by studying and learning from the market for acne cleanser. It is guaranteed that several other companies that produce acne cleanser will also exist. Making a comparative analysis of the different cleansers and the prices of the same sold by the different companies is a priority. In doing so, the company can be in a better position to identify some of its shortfalls and make the much needed changes in its policies related to production.

Another vital piece in the functional organizational structure of any given business is the finance department. The finance department is over purchasing materials, distributing salary, settling debts and paying bills. This department also needs to keep a valid record of all monetary transactions and prepare statements recording cash flow. Some of these responsibilities can be delegated to outside institutions which will prepare the statements professionally. This can be more frugal than employing a business?s own financial division.

The third aspect of the functional organizational structure of the company is production. There are a number of activities that come under production. Procurement of raw materials, determining the production process, product design, quality control, packing and storing the finished products are some of them. Both under production and over production will affect the profitability of the company. To maximize profit, every company should try to minimize its cost of production. Proper management and strict control over the production process will go a long way in eliminating all wastes in the production process.

Steve Wilheir is a
management consultant and C-level executive coach to Fortune 500
organizations who enjoys writing articles to help small business owners and
entrepreneurs.Having become
comfortable with
this application of the functional organisation structure you ought to read more about the alternative types of project organization structure to discover the right way to structure your organization for prosperity.

Source: http://newhealthandfitness.org/2012/03/08/a-well-organized-acne-cleanser-firm/

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