In an early-stage embryo, the cells are unspecialised. They develop and become specialised for specific functions as the embryo grows.
The development of cells in different ways to carry out specific functions is called differentiation.
gene expression: every cell has every gene so they have all the information but they only use what they need and store everything else
The position of a cell in the embryo determines how it differentiates. Gradients of signalling chemicals indicate a cells position in the embryo and determine which pathway of differentiation it follows.
For example gradients of retinoic acid guide differentiation of cells in the development of forelimbs, pancreas, lungs, kidneys and other organs.