Divisional structures
6 important questions on Divisional structures
What is the difference between a functional structure and a divisional structure?
Divisional structure groups people based on demands for specific products, markets or customers.
What is a product structure?
- Ex. IKEA; Sofas, tables, chairs
What is corporate headquarters staff?
-> Has an integrating role.
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When can a product division structure and a multidivisional structure be used?
Multidivisional: Design allows company to operate in many different businesses. Every division is a different business.
What is the geographic divisional structure?
What is the market structure?
Each division has different marketing focus and develop products that suit the needs of its specific customers.
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