Divisional Structure

A divisional structure is an organizational design where a company is divided into semi-autonomous units, each focused on a specific product line, market, or geography. Each division operates like its own small company, with its own resources and management team. This structure allows for greater flexibility and responsiveness to market demands, as divisions can make decisions tailored to their specific needs. However, it can also lead to duplication of resources and less overall coordination among divisions. Overall, it helps organizations adapt to diverse markets or products while maintaining clear operational focus within each division.