when functional structures lose effectiveness,”what if you have a lot of different businesses?what if you operate in a lot of countries?what if you have many different customers?these situations are difficult to handle with functional structures because such structures tend to be “”one size fits all””-loyalties are ultimately to the function rather than a specific business, country

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divisional structure,”organizational structure made up of separate, semiautonomous units called divisions-each division produces specific products, operates in specific geographies, or serves specific customers-each division has a full complement of functionsadopted when organizations face too much complexity for functional structure to cope-many different products, or many regions

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advantages/disadvantages of divisional structure,”advantages:-each division specializes on a specific product, region, or customer and so performs better -leads to more focused, customized (thus effective) strategies-leads to higher responsibilities = better meets customers needsdisadvantages:-resources are duplicated across divisions-divisions find it tough to cooperate with other divisions–> incentives for cooperation is weak, the whole idea is to focus on your business

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