Betriebszweig

Betriebszweig is a term used in German business administration to denote a distinct organizational unit within a company that concentrates on a specific activity, product line, or market. It represents a portion of the enterprise that is planned and managed as a separate unit for purposes of control, planning, and reporting, while remaining part of the parent company and not a separate legal entity.

Typical characteristics include its own budgeting and planning processes, defined goals, and performance measurements. A Betriebszweig may have allocated personnel and resources and is often treated as a cost or profit center in internal accounting. It serves to segment the company for more precise management and to support better decision making regarding investments, pricing, and resource allocation. The definition of a Betriebszweig can be based on function (production, distribution), geography, product family, or customer segment.

In practice, a Betriebszweig is distinct from legal entities such as subsidiaries or branches. It is an internal construct used for organizational and accounting purposes, not a separate company. Related concepts include Geschäftsbereich (business area), Geschäftszweig (line of business), and Kostenstelle (cost center). The exact usage may vary between industries and firms, but the core idea is to create semi-autonomous units within a larger corporate structure to enhance control and clarity in performance evaluation.

Examples can include a manufacturing group with separate Betriebszweige for motor parts and electronic components, or a diversified company that maintains different Betriebszweige for research, production, and sales.