Advantages of divisional structures, Strategic Management

Assignment Help:

Advantages of divisional structures

- Quicker decision making e.g. autonomous divisions do not have the long-winded process of a long chain of command when making competitive decisions.  They can respond quicker and more flexibly to changes within the business environment without consulting a centralised Board.

- Greater focus and specialisation of activities as well as resources for market and product performance. This enables better customer focus e.g. closer to the local culture of different countries or customer groups, or more effective core competences developed. 

- Independent divisions enable more isolation of a company's revenues and costs, therefore better 'ring fencing' of financial results to evaluate performance by aholding company or group.

- More empowerment to operational and tactical level e.g. greater motivation to divisional managers.

- Good training ground for 'grooming' future strategic managers.

- Frees up senior management time (the 'strategic level'). Head office or holding

- Company has more time for put into strategic planning instead of day-to-day tactical and Operational involvement in business matters.


Related Discussions:- Advantages of divisional structures

KOTTLER, EIGHT STAGE PROCESS

EIGHT STAGE PROCESS

Develop wind energy offshore, We know from a great deal of research that wh...

We know from a great deal of research that when asked to assign probabilities to uncertain states of nature most people give answers that are over-confident when calibrated against

Coca-Cola vs Pepsi, How would you respond to Coca-Cola’s change in sales po...

How would you respond to Coca-Cola’s change in sales policy? How would you ensure Pepsi’s board that this response will allow you to remain competitive and profitable?

Describe the elements of external environment analysis, Question 1: (a)...

Question 1: (a) What is diversification? Distinguish between the different types of diversification. (b) Give the advantages and disadvantages of these types of diversifica

Question 3, Conduct an industry & a 5-Forces analysis for BOE/AIR. w/focus ...

Conduct an industry & a 5-Forces analysis for BOE/AIR. w/focus on commercial aircraft mfg (Hint: extend POV to travel preferences now & future, & review BOE/Air''s POVs on the indu

Determine the level of rents of social housing, Explain what is meant by 'n...

Explain what is meant by 'non-market housing' and by what means it is delivered in either the UK or a country of your choice. What problems arise in its delivery? Outl

Technical reference model, Describe the structure and role of the Tech...

Describe the structure and role of the Technical Reference Model (TRM) in the The Open Group Architecture Framework (TOGAF).  What is the purpose of this component?

Problems of pursuing only profit objectives, Q. Problems of pursuing only p...

Q. Problems of pursuing only profit objectives? - Conflict with other stakeholder goals for example customers will want a better service and not want to pay anymore, a better s

Discuss the rationale for tfx company, TFX is a multinational company which...

TFX is a multinational company which manufactures and retails branded designer clothing with business units in a number of different countries globally. Up unless now, each of the

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd