Divisional structure

Question 1

Define Divisional Structure

Answer 1

A structure where employees are grouped according to the department they belong to. E.g Retail, Geographical

Question 2

explain the customer department

Answer 2

grouping of jobs and people according to the customers being served, E.G wholesale or retail

Question 3

explain the geography department

Answer 3

grouping of jobs and people according to their location, E.G regional or state

Question 4

explain the product department

Answer 4

grouping of jobs and people based on single products or services. a company who produces many products, like Cadbury may group activities according to whether they produce confectionery products, ice creams and dairy products, or soft drinks

Question 5

Advantages

Answer 5

direction of expertise at specific customers, products, regions and processes

encouragement of cooperation within departments

Question 6

disadvantages

Answer 6

potential of rivalry

reduced benefits of economies of scale because work could be duplicated