2 thoughts on “What are the differences between the business group and the business department”

  1. The difference between the business department and the business group is: a single company or department and industrial cluster.
    The business department generally refers to a single company or department. Under the head office according to the product, region, sales channels, or customers to set up several business departments or branches to make them a profit center for independent operations, independent accounting, and self -profit and loss. The decision -making power of the problem, especially the power of other powers, especially the power supply, production, sales and product development.
    The literal understanding is the meaning of the business group. That is, industrial clusters, enterprises with close industries and related supporting agencies gather in space, and form a strong and continuous competitive advantage.
    Extension information:
    The advantages of the business department:

    The division of responsibility and rights is clear
    1, can better mobilize the enthusiasm of operating managers;
    1) The business department system is based on profit responsibility, which can ensure the company's stable profits;
    2) The independent production and operation activities of the business department can continue to cultivate senior management talents for the company.
    2, each business department has its own products and markets, which can plan its future development, and can also flexibly adapt to the new situation of the market to quickly respond. Therefore, this organizational structure has both high stability and good adaptability.
    3. It is conducive to the highest leadership from getting rid of daily administrative affairs and becoming a strong decision -making institution. At the same time, it can make the enthusiasm and creativity of various business departments in use, thereby improving the overall benefits of the enterprise.
    4. Although the manager of the business department is only responsible for leading one unit smaller than the company, because the business department's self -contained system and independent operation, it is equivalent to a complete enterprise, so he can suffer from senior managers of the enterprise. Facing various tests. Obviously, this is conducive to cultivating comprehensive management talents and reserving cadres for the future development of enterprises.
    Reference information Source: Baidu Encyclopedia-Institute

  2. Definition of the organizational structure of the Ministry of Economic Affairs nThe organizational structure of the Ministry of Institutional (the organization structure of the Ministry of Institutional, the Territory Structure, and the Establishment of the Ministry of Division), also known as the "M -type" organization. It is divided and combined based on the target and results as the benchmark. It is an organizational structure of decentralized management of decentralized management of decentralized management in a enterprise in a enterprise to implement a decentralized product market or regional market and independent interests and responsibilities.
    This [[Organizational Structure]] form was originally founded by Slong, a universal Motor Corporation, also known as "Slong Model". After the transition from free capitalism to monopoly capitalism in Western economy, under the condition of large -scale enterprise scale, diversified enterprise operations, and intense market competition, the Western economy has occurred in a formal form of albinum -type organization.
    The main characteristics of the characteristics of the organizational structure of the division system are: "centralized policy, decentralized operation", and its specific approach is to set up several business departments or customers under the head office according to the product, region, sales channels or customers. Branch to make them a profit center of independent operation, independent accounting, and self -profit and loss. The head office only retains the decision -making power of major issues such as the formulation of policies and policies, and the appointment and removal of important personnel. Other powers, especially for supply, production, sales, and product development Dispute as much as possible. In this way, the head office becomes an investment decision -making center, the business department is the profit center, and the subordinate production unit is the cost center, and through the implementation of "decentralized operations under centralized policy" Organic integration can enable the company's highest decision -making institutions to concentrate their efforts to formulate the company's general goals, general guidelines, general plans, and various policies. The business division gives full play to its subjective initiative without violation of the company's total goals, general guidelines, and general plans. , Autonomously manage its daily production and operation activities.

    Career group: that is, industrial cluster. Industrial cluster is a global economic phenomenon and an important feature of the development of modern industries. Michael Potter, Harvard University, believes that industrial clusters refer to the phenomenon of enterprises with close industries and related supporting agencies in a specific field (usually a leading industry as the core). Essence Since the mid -1990s, local governments in many countries have shifted public policies to promote the cultivation, development and upgrading of local industrial clusters on the basis of summing up international experience. Combining resources. The strategy and policies of the industrial cluster have been promoted and promoted by international organizations such as the United Nations Industrial Development Organization, Economic Cooperation and Development Organization. Since the reform and opening up, my country's industrial cluster has developed rapidly and concentrated in economic developed areas such as Guangdong and Zhejiang, and has become one of the most important factor in these regions with strong competitiveness.

    The industrial cluster, as a space gathering form of economic activity, realizes the collection of special regions, interbank exchanges, industry culture, industrial technology chain, industrial value chain, and related industrial resources. The soul of the industrial cluster lies in the network formed by a group of close connections.这些具有竞争与合作关系的关联性企业群体(最终企业群、中间企业群、相关制造业群)、各种中介服务组织(专业化供应商、各种服务商等)和相关公共部门(大学、 Research institutions, standardized institutions, various centers, government agencies, etc.), which constitute a cluster economic organization system, there are self -organization mechanisms such as related industries and professionalization systems and associations in the network. The core of the cluster existence and formation is an industry with local characteristics and advantages. The key to cultivating and developing is the understanding of the importance of small and medium -sized enterprises, the improvement of the endogenous growth mechanism (collective learning ability and innovation ability), and the cluster. Develop the social environment. Silicon Valley in the United States, German medical devices and CNC machine tools, and computer software in Bandar, India, etc., largely reflect the success of industrial cluster development to a large extent.

    Basic characteristics of industrial cluster: (1) spontaneous. This is the driving force generated by the cluster, and it is also the most fundamental feature. Industrial cluster is the product of market competition and interest game. It is a spontaneous expansion of order. The key is the driver of real interests. (2) Trust. This is the foundation of the cluster. Cluster companies approach each other, so the industry and life together constitute a regional society, and gradually establish a social institutional arrangement of trust relationships and ensure such trust relationships in long -term close exchanges, thereby reducing transaction costs. (3) Spy. This is the result and vitality of cluster development. When the scale of industrial aggregation reaches a certain degree, the gathering area will form a "industrial ecological chain" and "economic ecological circle" with a virtuous cycle. It has the spillover effect of vertical and horizontal, physical and intelligence, so that related enterprises and departments can be able Benefit and get external economy.

    The competitive advantage of industrial clusters: (1) synergy effect. The cluster is not a total of the number of enterprises, but has some characteristics of the self -organized system. It can respond flexibly to the external changes, corresponding to the economic effects of the enterprise, and interact with each other. In the structure of the cluster, the resource endowment has formed a resource integration capability, which constitutes the long -term competitive advantage of the cluster, and is unable to own the non -non -cluster and out -of -clusters. (2) External effect. Large, medium and medium -sized enterprises in the cluster gathered with various service agencies and government agencies to form a flexible and professional, innovative environment, information exchange, knowledge sharing, cultural common to cultural, cooperative competition and path dependence, and it is easier to achieve technological breakthrough innovation. Get the competitive advantage of technical monopoly. External economy is the most important source of creating and maintaining the advantages of cluster competition. Due to the different types and characteristics of various industrial clusters, the source of its advantages is also different. The competitive advantage lies in the social network formed by its flexibility and professionalism. (3) Regional effect (structural competitiveness). After the formation of clusters, it can be reducing costs, stimulating innovation, improving efficiency, and exacerbating competition to improve the competitiveness of the entire region. This kind of cluster competitiveness formed by a specific structure established by the "network" relationship not only enables enterprises to indirectly use more non -ownership, but also form a more vivid and direct regional brand effect. Create market advantages.

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