Q Question: As firms grow, many show a pattern in shifting of structure to function to divisional structure. What key factors may compel the firms to move forward with the next phase of structure?
Solution: The Divisional Structure of business purposely targets the segments related to geography, market and product and services groups. It is indeed necessary for the organization to arrange itself within the divisional lines to unify and devise a complete set of functions that would prove the strategies sufficient for initiating all production and marketing related activities. The transition is thus necessary from a functional structure to the divisional structure. This approach is always useful for a firm in all the decision-making activities that enables
