Divisional structures – product organisation, Strategic Management

Assignment Help:

Q. Divisional structures – product organisation?

The functional structure is normally adopted by an entrepreneurial structure e.g. small business, because the organisation grows and requires more specialisation and control.  Overtime as the organisation becomes larger, more complex and more diversified in terms of its products and markets, the next step is often to adopt a divisional structure.  When companies become really diverse andlarge and they are frequently composed of some independent divisions orsubsidiaries, these often established as separate legal entities within a group. 

A division is a distinct business set up within a larger company to make sere a certain market or product is handled and promoted as though it were a separate business. A divisional structure requires strategic business units (SBUs) or divisions to manage an organisations diverse products, brands or markets.   This leads to the creation of separate business units to address each market in which the company is operating. The phrase 'Strategic Business Unit' came into use in 1960s.  

Each division or SBU of a group will normally have their own autonomous and separate functions e.g. marketing, sales and production departments.  A group holding company or head office may retain some functions (or departments) centrally often at e.g. IT, legal, finance and human resource (HR) functions, to assist centrally and support the different divisions.  This enables a group to standardise processes and lower overhead within the group by avoiding the duplication of functions within divisions.


Related Discussions:- Divisional structures – product organisation

How to get assignment service, Will you please mention me assignment help s...

Will you please mention me assignment help service about to?

Limitations of using balanced scorecard, Q. Limitations of using balanced s...

Q. Limitations of using balanced scorecard? - Historical performance analysis is no guide to the future. - Manipulation or 'massaging' of performance measures by management,

Samsung, Samsung multibusiness strategy

Samsung multibusiness strategy

What is benchmarking, A technique employed to help with deciding which soft...

A technique employed to help with deciding which software package to select.

What is the eva for this division, Division Y has annual operating profit o...

Division Y has annual operating profit of £40 million after charging £6 million for the development cost of a new product which has been launched and is expected to last this year

Investment planning, Using examples, explain the differences between the pr...

Using examples, explain the differences between the primary and secondary markets for securities. Question Discuss systemic risk and any effects that it might have on investo

What techniques would you use, Question 1: "Sometimes conflicts escalat...

Question 1: "Sometimes conflicts escalate, the atmosphere becomes charged with anger, frustration, resentment, mistrust, hostility, and a sense of futility....in such a confli

Evaluate the dividend yield, Q. Evaluate the Dividend yield? Creating ...

Q. Evaluate the Dividend yield? Creating shareholder value  Dividend yield Dividend yield     = (Dividend per share / Market share price) x 100% The dividend yiel

Multidimensional performance measurement, Q. Multidimensional performance m...

Q. Multidimensional performance measurement? Multidimensional performance  indicators recognise that the constant drive to increase profitability can ultimately be self-defeati

Strategic management in a global environment, 1. Read "The Global Branding ...

1. Read "The Global Branding of Stella Artois" in page 244 to 258, and answer the following questions: a) Develop a 5-forces analysis of the beer industry, noting whether the force

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