Question

Discuss company re-organizing into segments

Answer 1

Segment re organizing is a part of business restructure where in the company is divided in to various groups or segments based on their profitability ,product wise ,location wise among other reasons.

Benefits of segments in an organization:

(I) Concentrate of most profitable segments and improve those not performing well

(ii) Easier financial reporting

(iii) Better control over a variety of products/ process and ensuring departmental accountability

(iv) Helps in growth and shareholder value