1. Understanding Enterprise Structures
  2. Model Your Enterprise Structure

Model Your Enterprise Structure

This example uses a fictitious global company to demonstrate the analysis that can occur during the enterprise structure configuration planning process.

Your company, InFusion Corporation, is a multinational conglomerate that operates in the United States (US) and the United Kingdom (UK).

Scenario

InFusion Corporation has 400 plus employees and revenue of $120 million. Your product line includes all the components to build and maintain air quality monitoring systems for homes and businesses. You also provide financial services to your customers through a separate division.

The following figure illustrates the InFusion enterprise structure.
The enterprise legal and management structure example shows InFusion's four divisions, two regions, and the assigned personnel for each strategic business unit..

The upper part of the figure illustrates a legal company organization for companies in various political regions held by a public company. They enter into transactions initiated by two business divisions, Air Quality Control and Financial Services.

The lower part of the figure illustrates the management structure, which reflects the two businesses, Air Quality Management and Financial Services in strategic business units. The corporate administration is centralized and serves both businesses and all companies.

Regional managers have direct reporting lines to worldwide business managers, and dotted line responsibility to Regional Vice Presidents serving as general managers.

The Corporate Services strategic business unit provides common administrative, payroll, and procurement services.

The companies that enter into the transactions on behalf of the strategic business units are linked to the strategic business units by double-headed arrows. Other facts:

  • Three companies enter into transaction for the AQM division.

  • One company enters transactions for Financial Services exclusively.

  • The holding company enters into transactions on behalf of both divisions and the corporate headquarters.

  • Each company accounts for itself in the Oracle Fusion General Ledger.

  • The companies in the same jurisdiction share the ledger using balancing segments.

  • The company that's in another jurisdiction uses a different ledger.

  • All the companies share the chart of accounts.