Question

Which one of the following best describes a divisional structure?

1) A structure where the organization is divided into self-contained units based on products, services, or geographic locations
2) A structure where the organization is divided into functional departments such as marketing, finance, and operations
3) A structure where the organization is divided into teams or groups based on specific projects or tasks
4) A structure where the organization is divided into levels of authority and responsibility

Answer 1

A divisional structure best describes an organization divided into semi-autonomous units based on products, services, or geographic locations, each with its own resources and departments but aligned with the central organization's goals.

Step-by-step explanation:

The divisional structure describes an organizational form where the organization is divided into self-contained units. These units are commonly structured around products, services, or geographic locations. Within such a structure, each division functions like a semi-autonomous company, often equipped with its own resources, staff, and objectives, aligned with the larger organization's goals. Each division may have its own marketing, finance, and operations departments, although they report up to a central authority that provides overall strategy and coordination. This type of structure is designed to give each division the flexibility and focus to respond quickly to market demands and customer needs within its specific niche or region.