Industrial Organizational Structure PDF

Chapter 1 Industrial Organizational Structure Intended Learning Outcomes: At the end of this chapter, the students are expected to: 1. Describe the structure of the manufacturing sector; 2. Identify the scope of the chemical industry; and 3. Distinguish the elements of the organiz...

Chapter 1 Industrial Organizational Structure Intended Learning Outcomes: At the end of this chapter, the students are expected to: 1. Describe the structure of the manufacturing sector; 2. Identify the scope of the chemical industry; and 3. Distinguish the elements of the organizational structure in the chemical industry. 1.1 Manufacturing Sector Industry – branch of an economy (economic activity) concerned with processing closely related raw materials, goods, and/or services Industry classifications – standard of classifications using the dominant source of revenue of a group/company (ISIC, GICS, NAICS, PSIC, etc.) Economic Sectors – broader categorization of industrial classifications where groups/companies are not limited to one sector or industry Types of Sectors Primary – retrieval and production of raw material commodities Secondary – transformation of raw or intermediate materials into goods Tertiary – supplying of services to consumers and businesses Manufacturing Sector “Production of finished goods with the help of equipment, labor, machines, tools, and chemical or biological processing or formulation.” – essence of the secondary sector of the economy that depends on the primary sector for the raw materials necessary for production Factors in establishing the manufacturing sector Location availability of suitable land & desired price proximity to the market (transportation) availabilty of adequate labor, power, & capital  Ownership Public sector – under government ownership and control in different levels Private sector – owned, controlled, and managed exclusively by private parties Joint sector – both government and private entities act as collaborating partners to own, control, and manage resources and activities Cooperatives – private, voluntary, independent associations where people join voluntarily to pursue economic interests Weight/bulk of raw materials and finished products Light industry – small-scale; factory units on industrial estates Heavy industry – big plants covering large land area Capital Investment Micro-scale enterprise (