LOGO

Learning Goal1. I will be able to explain the divisional organizational structure

2. I will be able to assess (advantage and disadvantage) the divisional organizational structure

3. I will let you know some real life example of different types of divisional dtructure

4. I will let you know the four different types of the divisional structure.

India

Japan

NorwayGermany

Thinking time

Why does MacDonald let each franchises provide different type of food based on different regions?

Bisides divide the company based on regions, can you divide the company by some other factor?

NAme and Definition

It groups together people who work on the same product or process, serve similar customers, and/or are located in the same area or geographical region. ( p259 line 9)

Divisional Organizational structure

Product Process Customer Geographical

Advantage of divisional structureMore flexibility in responding to environmental changes

Improved coordination across functional department

Clear points of responsibility for product or service delivery

Expertise focused on specific customers, products, and regions

DISadvantage of divisional structureReduce the economis of scales

Increase costs through the duplication of resource

Create unhealthy rivalries

Product structure

ipad macbook pro iphone

common in large organzation (comapny)

Product structure

Advantage

everygroup will focus on product and benefit

avoid the too many workers in one department, it is too hard to manage

Disadvantage

need enough manager which have multiple ability

the repeat cost

the power share

Geographical structure

Geographical structure

Advantage

workers can response for the region which they know well, easy to do the culture marketing

good for the coordination in each regions

Disadvantage

need enough manager which have multiple ability

power share

Customer structure

Students

Adults The custoemers who has enough credit

The customers who have not enough credit

Customer structure

Advantage

because all the service are based on different type of customers, so the service are suitable for all the customers

the service which company provide will always fit to the customers' demand

Disadvantage

if the company does not hafe enough number of customers, this type of structure would be a bad choice

need a large number of workers

Process Structure

financeHR

promotion Sale

Process Structure

Advantage

effective in the using of Human Resource

centralized power

reduce the responsibility on department manager

Disadvantage

"wall"

not good for the middle level managers' developing

Review Questions

How many structures are there in the Divisional Organizationl Structure?

What are they?

Activities

Contest time

Open Discuss Questions

If you have s company, which structure you would like to use?

Which structure is the most useless one in your opinion?

Work Citedbaike, baidu. Geographical Structure. Ed. baidu baike. N.p., 10 Dec. 2013. Web. 13 Dec. 2013. <http://baike.baidu.com/view/4696236.htm>.

baike, baidu. Process Structure. Ed. baidu baike. N.p., 12 May 2012. Web. 13 Dec. 2013. <http://baike.baidu.com/link?url=rQTpbMBLZhfulcA8u9PG0efm4tRdcnh188yeCyFWUFUVpThSydH6-rver8cuFqE3pjD3aobtu12IQvNURGNrHq>.

baike, baidu. Product Structure. Ed. baidu baike. N.p., 12 Nov. 2010. Web. 13 Dec. 2013. <http://baike.baidu.com/view/4696231.htm>.

baike, baidu. Customer Structure. Ed. baidu baike. N.p., 12 Nov. 2010. Web. 13 Dec. 2013. <http://baike.baidu.com/link?url=dWVgGoaZ0Lc0RAQ2IivbJGwzWrSASWEGWMSVfKtB0HuLpof0DLNfFEE_mpNyj5Fo2AUfro3Xtw3hYsxWTc9xzq>