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Operational Structure

When considering business structure there are two different approaches, namely the organizational structure and the operational structure. In this module we focus on the operational structure of a company. While the organisational structure depicts the structures and human resources, the operational structure illustrates the processes of a company. Normally, these processes are focused on output (i.e. the organization's outputs from products and services).


Outsourcing is subcontracting a service such as product design or manufacturing, to a third-party company. The decision to outsource is often made in the interest of lowering cost or making better use of time and energy costs, redirecting or conserving energy directed at the competencies of a particular business, or to make more efficient use of land, labour, capital, (information) technology and resources.


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