today’s organizations: kinds, levels and teams
1. kinds of organizations. very broadly there are two kinds of organizations:
a. a business firm is a privately owned organization that serves its
customers in order to earn a profit. business firms must earn a
profit to survive. profit is the reward to a business firm for the risk
it undertakes in offering a product for sale: the money left over
after a firm’s total expenses are subtracted from its total revenues.
b. a nonprofit organization is a nongovernmental organization that
serves its customers but does not have profit as an organizational
goal. such organizations include museums, private hospitals, and
2. levels in organizations and how marketing links to them. there are three
levels in large organizations:
a. the corporate level is where top management directs overall
strategy for the entire organization.
b. the business unit level is the level at which business unit managers
set the direction for their products and markets. a business unit
refers to an organization (or a part of an organization) that markets
a set of related products to a clearly defined group of customers.
c. the functional level is where groups of specialists create value for
the organization. often called “departments,” examples of these
function units are the finance, human resource management or
research and development units.
marketing works at each of these levels to help the organization
where things happen: functional areas and cross-funtional teams.
cross-functional teams - teams from different departments
who are mutually accountable to a common set of performance
goals. sometimes the teams include suppliers and customers for