Marketing PowerPoint Presentation Example | Topics and Well Written Essays - 2000 words

Marketing - PowerPoint Presentation Example On VEBS Oel, which specializes in oil products and petrol distribution. It is also highly successful in the refining sector, for example, selling 6.4 million barrels of fuel daily to gas stations. BP also produces polyethylene, polypropylene and acetylene amongst others. BP is also now involved in the solar energy sector. BP, undeniably a giant, is located in Europe, North and South America, Asia, Australia and Africa. (BP 2008). Game theory is responsible for the coordination processes in a given functional structure. Schmidt (2002) explained that these coordination processes usually follow physical flows. Each division (purchasing, production, sales, etc.) is constrained in throughputs by other internal divisions while adapting to local uncertainties (labor, breakdown of equipment, input and output changes with regard to the firm environment, etc.). Routines are used to balance ex ante budgets and define buffer inventories. Chandler pointed to the successive organizational changes which occurred in Du Pont de Nemours from 1907 to 1920, when coordination within a functional firm becomes clearly inefficient and that it was then broken down into parts and that a multidivisional structure emerges. Then much simpler coordination procedures can be implemented under the authority of the division manager while the benefits of the specialization by function are lost (economies of scope). Consider a stylized firm with a functional structure consisting of a purchasing, a manufacturing, and a selling division. It is assumed that manufacturing involves fixed costs, so that it pays to increase the volume of throughput. However, the environment is assumed to be uncertain both in the downstream and upstream markets. This suggests that corresponding decisions should be flexible in order to benefit from favorable market conditions. Altogether these conflicting objectives may endanger the financial