Essentials of effective implementation divisional structure

It is composed of self-contained divisions based on products,technology or geographical areas.Each strategic business business unit can be regarded a division.It allows customized product market strategic for each division.It is suitable for multi-business organizations.
Advantages

1. Effective management of diversity.It tailors structure to needs of markets,products and ares.
2. High product/market visibility through concentration.
3. Facilities attention to strategy by senior management.
4. Facilities performance measurement of divisions.Focuses accountability for performance.
5. Management development encouraged by specialization within a division.

Disadvantages

1. Conflict between divisions due to poor communication.
2. Poor coordination of activities among divisions.They tend to become independent business.
3. Confusion over locus of responsibility.
4. Costly due to duplication of activities.Layers of management also add to costs.