What is a Divisional Structure?

A divisional structure is a common organizational framework that groups business activities based on products, services, geographical locations, or markets. Each division within this structure operates as a semi-autonomous entity equipped with its own set of resources and functions. 

The purpose of a divisional organizational structure is to provide a targeted focus on specific products, regions, or markets – increasing efficiency and agility. Companies with a wide product range and operating in many different markets often choose this organizational framework. Some leading divisional organizational structures include:

• Procter & Gamble
• Ford Motor Company
• Nestlé
• Samsung
• Adidas.