Businessmate Site Logo

                                  Home - About - Advertise

                                  Date: 2020-06-08
                                  Search Articles by topic

                                  Mangement and Leadership

                                  Production Management

                                  Business Strategy



                                  Human Resource Management

                                  Organizational Theory & Design

                                  National and Organizational Culture

                                  Important Business Terms


                                  Article Search
                                  Search Title & Content:
                                  Search Author:

                                  Custom Search






                                  Divisional Organizational Structure

                                  Recommend this article to your friends!
                                  When a company expands to supply goods or services to a variety of customers, offers a variety of different products or are engaged in business in several different markets, the company could adopt a divisional organizational structure.

                                  A divisional structure groups its divisions according to the specific demands of products, markets or customers. Unlike the functional organizational structure, where the different organizational functions of the company conduct activities satisfying all customers, markets and products, the divisional structure focuses on a higher degree of specialization within a specific division, so that each division is given the resources, and autonomy, to swiftly react to changes in their specific business environment. Therefore, each division often has all the necessary resources and functions within it to satisfy the demands put on the division

                                  Each division will likely be structured as a functional structure. A company with a divisional structure therefore has a subset of different and specialized SBU's satisfying the demands of different customers, markets or products.

                                  The benefit of this organizational structure is that companies are able to specialize its activities into self-reliant divisions, each capable of satisfying e.g. customer demands and changes within the business environment.

                                  Date Created: 2010-04-29
                                  Posted by: Admin
                                  Divisional Organizational Structure

                                  Related resources:

                                  What is Contingency Theory?
                                  James Galbraith: Information Processing View
                                  Max WeberĄ¯s theory of Bureaucracy
                                  Max WeberĄ¯s three types of authority
                                  Mechanistic vs. Organic Organizational Structure (Contingency Theory)
                                  What is a Simple Organizational Structure?
                                  What is a Functional Organizational Structure?

                                  Online MBA, Online MBA Courses, Divisonal Organizational structure, organizational design, markets, customers, products. division, Specialisation


                                  Advertise on


                                  Copyright © BusinessMate 2009-2019

                                  Home - About - Terms of Use - Contact - Sitemap - Privacy Policy


                                                                  Super League


                                                                  Second-hand housing



                                                                  Buy a car



                                                                  Premier League