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Firms that operate in diverse markets or offer a wide range of products and services should consider using a divisional structure. This approach allows for greater flexibility and responsiveness to market changes, as each division can operate independently and focus on its specific customer base or product line. Additionally, companies with multiple geographical locations or those pursuing different business strategies can benefit from this structure, as it promotes accountability and specialization within each division. Overall, divisional structures are ideal for larger organizations that require a more tailored management approach to efficiently address varied business needs.

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