Divisional Structures

• A division is a collection of functions working together to produce a product.

  • Divisions create smaller, manageable parts of a firm.

    Divisions develop a business-level strategy to compete.
    
    A division has marketing, finance, and other functions.
    Functional managers report to divisional managers who then report to corporate management.

  • Product structure: divisions created according to the type of product or service.
  • Geographic structure: divisions based on the area of a country or world served.
  • Market structure: divisions based on the types of customers served.

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