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

Strategic planning, advantages and disadvantages of strategic planning

advantages and disadvantages of strategic planning

Performance management scenario, You are Pam, Vice President of Marketing f...

You are Pam, Vice President of Marketing for Superior Products, Inc. You joined the company two months ago, replacing an individual who hadbeen the VP of Marketing for the comp

Ray''s satellite emporium, Ray's Satellite Emporium wishes to verify the be...

Ray's Satellite Emporium wishes to verify the best order size of their best selling satellite dish (model TS111).  Ray has estimated the yearly demand for this model at 1,000 units

What do you mean by shared service centres, Q. What do you mean by Shared s...

Q. What do you mean by Shared service centres? Shared service centres "consolidate" one or more back-office operations for numerous divisions of same group to use e.g. head off

Define strategic planning, QUESTION Firms often compete with each other...

QUESTION Firms often compete with each other to gain their customers' attention and business. While doing so, each firm tries to chalk out its unique strategy or gameplan. Stra

Week 2 Question 1, Due Date: 24 Oct 12 by 10 a.m. Prepare an analysis of a ...

Due Date: 24 Oct 12 by 10 a.m. Prepare an analysis of a Fortune 500 company that you find interesting using the 2011 list at CNNMoney, You">http://money.cnn.com/magazines/fortune/

Explain developing a strategic vision, Developing a Strategic Vision: Phase...

Developing a Strategic Vision: Phase 1 of the Strategy Executing, Strategy Making Process 1.   Very early in the strategy making process, a company's higher-ranking managers mu

Show the features of international and global strategies, Question: (a)...

Question: (a) Firms are always looking to outperform each other; three generic strategies have been identified to allow them not only to attain advantages over competitors b

Supplementary activities, To be effective in hazard control programme it...

To be effective in hazard control programme it must be planned and should be logical. Programme objectives and safety policies need to be established. Responsibility to th

Describe hopwood’s social controls, Q. Describe Hopwood’s Social controls? ...

Q. Describe Hopwood’s Social controls? Group norms, staff culture and social interaction can control what is acceptable and unacceptable behaviour, it also can determine accept

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