Functional & Divisional Structures

Functional & Divisional Structures

1. Functional Structures

   • An organizational structure composed of all the departments that an organization requires to produce its goods or services

2. Divisional Structure

   • Product Structure
     • Managers organize divisions according to the type of good or service they provide
   • Create a series of business units to produce a specific kind of product for a specific kind of customer
   • Geographic Structure
     • Managers organize divisions according to the area of the country or world they operate in
   • Market Structure
     • Manangers organize divisions according to the type of customer they focus on