Give an Example of Both Internal Departmentalization and External Departmentalization

question 74

Essay

Give an example of both internal departmentalization and external departmentalization.

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Definitions:

Annual Spend

The total amount of money a company or individual spends over the course of a year, often used in the context of budgeting and financial planning.

Service Organizations

Businesses that primarily offer intangible products, such as expertise or labor, rather than physical goods.

Purchased Materials

Items or components procured from external sources used in the manufacturing process or for company operations.

Labor Costs

Encompass the total expenses related to employing labor, including wages, benefits, and taxes, significant in determining product pricing and competitiveness.