What are the Merits and demerits of divisional structure?

Answer 1

The divisional structure offers several merits, such as increased flexibility and quicker decision-making, as each division operates semi-independently, allowing for tailored strategies that respond effectively to market demands. It also fosters accountability, as division leaders are responsible for their performance. However, demerits include potential duplication of resources across divisions, leading to inefficiencies, and the risk of divisions becoming too focused on their own goals at the expense of overall organizational coherence. Additionally, inter-divisional competition can create conflict and hinder collaboration.