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How can we organize our company? Print
Topic Contents
How can we organize our company?
Organization
Saving Decisions
Working Together From Different Locations
Product Manager
Segment Manager
Functional Manager
Competitive Intelligence Officer
Coordination Concerns
Tactical Mistakes
Coordination Concerns

R&D Managers

R&D Managers can explain the relationship between:

  • Age and positioning
  • Positioning and material cost
  • MTBF and material cost
  • Automation and project length
  • Number of projects and completion times
  • Project length and proximity to other products

R&D Managers coordinate with:

  • Marketing when products are repositioned or introduced;
  • Production when products are launched or material costs change;
  • Finance over their budget.

Marketing Managers

Marketing Managers can explain the relationships between:

  • Price and contribution margin
  • Price and demand
  • Promotion budget and awareness
  • Sales budget and accessibility; and A/R policy and demand

Marketing Managers coordinate with:

  • R&D when products are launched or repositioned;
  • Production in their unit sales forecast and contribution margin; and
  • Finance with sales projections and their budget.

Production Managers

Production Managers can explain the relationships between:
  • Inventory levels and carrying costs
  • Carrying costs and opportunity costs (not having inventory to sell)
  • Capacity and overtime
  • Automation and labor costs
  • Overtime and labor costs
  • Idle plant costs
  • Consequences of selling capacity or buying automation

Production Managers coordinate with:

  • R&D about new product introduction and material costs;
  • Marketing about demand, scheduling, and inventory;
  • Finance about plant and equipment changes, inventory levels, and contribution margins.

Finance Managers

Finance Managers can explain the relationships between:

  • Stock issue or retirement and capital structure
  • Working capital and inventory
  • Dividend policy and stock price
  • Emergency loans and cash
  • Current debt and short-term interest rates
  • Bond issue and prepayment
  • All financial performance measures

Finance Managers coordinate with:

  • R&D over budgets and product introductions;
  • Marketing about sales projections, margins, and budgets;
  • Production about margins, plant and equipment changes and inventory levels.