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Busineess orgaanisationn and struucture

1.4 Divisional/pproduct sttructure

An orgaanisation iss split into several divvisions – eeach one aautonomouusly overseeeing a
producct (i.e. sepaarate divisioons for carrs and mottor bikes), a geograp phical section (i.e.
separate divisions for US and Europee) or even bby customeer (i.e. sepparate divissions
that loook after corrporate clieents and private cliennts).

Each division is liikely to havve a functioonal structture, with aall the depaartments it needs
in order to operatte in its parrticular maarket segment.

Board oof
directorrs

Divission 1 Divisionn 2 Divvision 3

Functionns

 Advanttages D Disadvanttages

 

 Clear respponsibility ffor productts/ 
divisions



 Easily adaapted for fuurther
diversification 

 Top manaagement freee to
concentratte on strateegic matteers

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