BUSINESS MANAGEMENT

Business Management

Business Management

Introduction

The business groups are formed according to technological and/ or market requirements and organized by products. They are organizational entities to which parts of EPCOS AG, its subsidiaries, or parts of subsidiaries are assigned. Following similar criteria, business groups may be broken down into business divisions and business units (Brazil, 2007, pp 92 - 109).

Discussion

The business groups are responsible for their worldwide operating results. They control and monitor the development, manufacturing and marketing activities of the product lines assigned to them. They develop their strategies in close consultation with the worldwide sales organization (Adair, 2007, pp 45 - 60). Business groups are normally headed by a number of executives who work closely together. The business administration function is always represented in business group management, one member of which acts as president of the business group. Business group management reports to the Management Board (Charan, 2006, pp 60 -70).

Sales

The worldwide sales organization of EPCOS is integrated into the sales network of TDK-EPC and has the task of ensuring maximum market coverage with optimum economy. It is directed by EPCOS AG's Corporate Sales, whose management reports to the Management Board and includes the business administration function. The regional sales units are organized as EPCOS sales companies, as entities of EPCOS subsidiaries or as departments of Corporate Sales. Each regional sales unit is headed by a general manager, who is assisted by a business administration manager. The managers of the sales units report to the head of Corporate Sales. Sales resources are assigned in consultation with the business groups (Brazil, 2007, pp 92 - 109).

The regional sales units link the business groups. They are their equal partners and possess a high degree of empowerment. For our customers, they are the major point of contact, offering advice on all business covered by the company (Charan, 2006, pp 60 -70).

Subsidiaries

The heads of subsidiaries, like those of the regional sales units, are also assisted by commercial managers. If the subsidiary's operations are assigned to a specific business group or to Corporate Sales, the head of the subsidiary reports to the manager of the designated organizational unit. The reporting requirements of subsidiaries with mixed activities are determined ad hoc (Charan, 2006, pp 60 -70). Their organizational structure must reflect clear lines of accountability to the business groups or to Corporate Sales. The business groups and Corporate Sales work in close cooperation with the subsidiaries' management on any decisions affecting the operations of the subsidiaries assigned to them. Each subsidiary has a board, a shareholder delegation or an advisory council (Brazil, 2007, pp 92 - 109).

Corporate Departments

The corporate departments support the Management Board in conducting the company's affairs, in coordination of company-wide tasks and in risk management. In addition, they establish policies and perform advisory and service functions for the business groups. In addition, Corporate Sales also has operative responsibility (Adair, 2007, pp 45 - 60).

Corporate Sales (S)

Corporate Sales manages EPCOS' global sales organization. It owns processes such as:

Organizational development and expansion of regional sales ...