Zamon Ltd. is manufacturer of electronics goods based in Pune. On one hand it deals in items like books, music instrument, videotapes etc., and on the other hand it deals in laptops and mobile phones.

The company had a functional structure with separate heads for production, marketing and finance.All the functional heads were looking after the products, but at times their activities overlapped. This led to problems related to coordination and inter-departmental conflicts. To facilitate specialization Ramit, the CEO of the company decidedto group books, music instrument, videotapes etc. under ‘Media’ and laptops and mobile phones under ‘consumer electronics’. While doing so Ramit has performed a step in the process of one of the functions of management. Identify the step.