Groups employees based on products, geographic regions, or customer segments. Commonly used in organizations with diverse product lines or international operations.
Product Focus / Market focus
Employees are organized in divisions, each responsible for a specific product, region, or customer group
Decision-making autonomy
Each division operates as its own mini-organization with its own functional departments and management team.
Alignment with external factors
Divisions can adapt and respond quickly to customer needs, market trends, or local regulations.
