7: Structure and Shape of the Finance Function

Question 1

functional structure

Answer 1

these group employees by specialism, such as finance and marketing

Question 2

geographic structures

Answer 2

used where an organisation is arranged according to geographic area

Question 3

divisional structure

Answer 3

when organisations reach a certain size, it may be appropriate to structure them into divisions or semi-autonomous blocks

divisions may focus on a particular geographic area or a particular product

Question 4

matrix structure

Answer 4

used where an organisation uses cross-functional teams

Question 5

alliances

Answer 5

where an organisation works with external entities

Question 6

shared service centres (SSCs)

Answer 6

these include centralising operations that previously existed in more than one part of the organisation

sometimes referred to as internal outsourcing

Question 7

outsourcing

Answer 7

involves an organisation sub-contracting business activities to external providers

Question 8

business process re-engineering (BPR)

Answer 8

involves an organisation transforming business processes, often re-designing them from the ground up

Question 9

relocation (offshoring)

Answer 9

involves migrating some part of an organisation’s activities to another country