Learn in the textbookOrganizational Structures
DefinitionA divisional structure (事業部制) sets up a division for each business unit, such as a product or region, and gives each division profit responsibility along with the functions its business needs.
ExplanationSince each division has its own development, production and sales, the division head can respond quickly to market changes on their own judgment. On the other hand, the same kinds of functions are duplicated in every division, which tends to waste people and equipment.
AnalogyIt is like a bakery and a flower shop owned by the same person, each handling everything from buying stock to keeping the books inside its own store.
Memory hookDivisions named for a product or place, such as Home Appliances Division or Kansai Division, each with their own sales and manufacturing departments, mark a divisional structure.