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Although many companies have many things in common, they also differ in some ways. Some companies are small while some are large. Some companies are operating in one product area only while others are operating in diversified areas. Some companies are operating in small geographic areas where others do their business in many countries around the world. To be able to cope with these varying objectives, companies adopt situations and strategies differently.

The process of dividing a company into subunits that are much more manageable is called departmentalization. Subunits are often called departments, sections or divisions. There are too many flexible structures that are adopted by companies these days so that they can meet their company’s specific needs. A fulfillment company should use a functional departmentalization when efficiency and low cost are the keys to achieve fulfillment of goals successfully. This involves the grouping of the employees according to the tasks broadness that they will be performing. Separate departments are normally create for all the business’ key activities.

For instance, the activities that are important in a manufacturing company are marketing, production and finance. In non-manufacturing concerns however, these functions are different In transport companies, the key areas are sales, finance and operations. In other words, if the company is large, the major departments can then be subdivided as the company grows. The important idea here is to take advantage of the specialization. And that is what fulfillment service are offering to companies.

If your company is big and is operating in stable environment, then you can afford to formalize your structure. The greater the competition’s intensity, the greater will the decentralization degree be. The more volatile is your environment, the more your company has to be more flexible and decentralized. Those companies who are implementing an organizational style that is appropriate for their strategy will become more effective than the others who are not using an appropriate style.