Advantages of Multidivisional Organizational Structure
Steven Bragg, manager of the Accounting Tools website, writes that advantages of the multidivisional structure include the ability to hold senior managers accountable for the results of local operations that are within their control. In addition, each division is alert to shifts in its market, which gives the division the ability to respond to these shifts quickly and remain competitive by refocusing their operating efforts to changing consumer preferences. To enhance the division's responsiveness, decision-making lies at the division level. In addition, with a focus on the local market, each division can develop and produce goods and services that appeal to its market and that the division produces and transports using local resources.