A divisional organizational structure gives a larger business enterprise the … Advantages. Cover the mechanistic, human relations and systems approaches I have chosen for my report three types of organisations: functional, divisional and matrix. Rather than duplicating functions as would be done in a simple product department structure, resources are shared as needed. Advantages And Disadvantages Of Product Divisional Structure. Compare a global product division structure and a geographic area structure. Expert Answer A global product division structure will first study the new market and devise a strategy accordingly. Advantages & Disadvantages of Divisional Organizational Structure. Global allocation of resources turns out to be very difficult. In this type of organizational structure, each geographical division has a degree of independence in adapting the business model to the specifics of the market it serves. Product, technology and customer diversity is managed Each of the division is considered as a profit center. Global area division structure is used for operations that are controlled on a geographic rather than a product basis. Product Structure Washing Machine Division CEO Corporation Lighting Division Television Division Corporate Managers 5. Territorial Divisionalisation This is a structure for huge companies functioning in different territories, such offices may have zonal offices and below them regional offices. Report on the differences, advantages, disadvantages of the various systems of organisations. One advantage of a global matrix structure is that it facilitates the use of highly specialized staff and equipment. ADVANTAGES duplication of facilities and staff personnel managers may pursue attractive short-term sites instead of long-term sites managers spend to much time trying to tap local instead of international markets Chart of Global Product Division ADVANTAGES : Reduces cost per unit Advantages. Global product divisions are part of a multinational's organizational structure when the primary division of the firm's activities is based on product (or service) categories. GROUP PROJECT 1: ORGANIZATIONAL STRUCTURE 7 Conclusion FedEx Corporation and United Parcel Service are world leaders in the transportation and package delivery marketplace with large aviation components. An advantage of a divisional structure is that each division can operate as a separate, self-sufficient unit without having to rely heavily on the parent company or top management of the organization. what are the advantages and disadvantages of each organizational structure? In accordance with the groups of the product, the structure is divided such that the specific product groups are taken care by the divisions. Firms in mature businesses with select product lines use it. Merits of Global Matrix Organization. A global product division structure provides a direct line of communication from the customer to those in the organization who have product knowledge and expertise A structure that is a combination of a global product, an area, or a functional arrangement is referred to as a(n) ________ organizational structure. Global Area Division. Worldwide product division structure - The worldwide product division structure is an organizational structure where the first division after the CEO is by product. Global Product Division. Their organizational structures are global product division and international division respectfully. Thus a global matrix structure is followed. 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