The concept of organizing a company into divisions can be expressed in accordance with the principles:
product: each division specializes in a specific product or service;
customer orientation principle: the firm groups its divisions according to the requirements of different market segments;
Regional: Each division is responsible for a specific geographic area and operates within that region.
Based on this, divisional management structures can be identified, focused on products/products, consumers and regions.
In a divisional-product structure, each teacher database product or service is assigned a manager who is responsible for its creation and sale. The heads of the various functional departments report to this person and report to him on issues related to the specific product.
Principles of division in the divisional management structure
This divisional organizational management structure provides companies with flexibility in adapting to changing market conditions. One manager is responsible for the production of a specific product, which facilitates more effective interaction between different functional units.
The main disadvantage of this option is that each branch responsible for a specific product creates its own functional areas, which may entail additional costs.
In developing customer-focused organizational structures, departments are formed around specific customer groups, such as B2B or B2C . The primary goal is to ensure that each individual customer is met at the same high level as a company that specializes exclusively in serving that specific customer category.
In cases where a company operates in several regions and requires the use of different strategies, it is advisable to use a divisional management structure based on the territorial principle. This model allows for effective coordination and management of business processes in each region, taking into account its specific needs and conditions.
The company appoints a dedicated manager who is responsible to senior management for activities in a given territory. The divisional-regional structure allows the company's strategies and operational processes to be tailored to the specifics of each region in order to better meet its needs and requirements. This approach also facilitates the development and preparation of local employees for local management positions.