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5 September. 2005

Pål Sørgaard, R&D

10

Market grouping vs functional grouping

This is one of the classical dilemmas

Telenor Mobil (Norway) part of Telenor Mobile (international) or Telenor Nordic

Functional grouping

Main concern with process and scale interdependencies

Encourages specialisation

Weak on customer focus and coordination of work flow (relies on direct supervision)

Market grouping

Main concern with whole product, meeting the customer, handling of complex work flows

Reduced quality of specialised work

Cannot take the same advantage of economies of scale

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