In the context of organizational structures, most companies today use some form of Divisional structure that encourages regional autonomy while building product competence in key areas around the world.
Step-by-step explanation:
A divisional organizational structure consists of several parallel teams focusing on a single product or service line.
For example: A product line of various car brands under General Motors or Microsoft's software platforms.
Some of the advantages of a divisional structure is that
- The ability of a company becomes more efficient and effective for coordinating activities among various divisions,
- It also gives company a greater flexibility in responding to changes in the local market
- The process of changing the size of the business by merely adding or removing divisions becomes very easy.