What type of organizational structure delegates authority to autonomous business units organized around specific products, customers, or geographic regions?
AFunctional Structure
BDivisional Structure
CSimple Structure
DMatrix Structure
Explanation
• A Divisional Structure groups organizational units into self-contained operating divisions based on products, service lines, target customers, or geographic territories.
• Each division contains its own functional resources (Marketing, HR, Operations), improving market responsiveness.
• Drawbacks include duplication of functional activities and increased operational overhead compared to purely functional structures.
Exam Relevance
- Topic: Organizational Structure
- Subtopic: Divisional Structure

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