Question

Give examples of segments of business firsm segmented by (a) organizational unit and (b) economic activity.

Answer 1

Answer:

Organizational unit- This unit of business takes care of employees, managers, sub ordinates, executives, directors, shareholders, creditors, public and most importantly customers. Company makes strategies to please everybody so that it may be a win win situation for everyone. Organizational culture has people from different backgrounds, skills, qualifications and behavior. Company treats everyone equal and do the welfare of employees. Company also takes into account the Corporate social responsibility (CSR). Company makes sure that there is no fraudulent practices within the organization and keeps a better internal control.

Economic activity- It refers to the product/service, production, manufacturing, trading, export and import, distribution, economies of scale, purchasing and selling. Companies produce the products in bulk so that per unit cost may come down and company may achieve Economies of scale. Companies try to reduce the cost and increase profit. Companies distribution channels, suppliers and customers are the strength.