The divisions within each SBU are related in terms of shared products or market or both , but the divisions of one SBU have little in common with the divisions of the other SBUs. Divisions within each SBU share product or market competencies to develop economies of scope and possibly economies of scale. The integrating mechanisms used by the divisions in this structure can be equally well used by the divisions within the individual strategy business units that are part of the UB form of the multidivisional structure. In this structure , each SBU is a profit center that is controlled and evaluated by the headquarters office Although both financial and strategic controls are important , on a relative basis financial controls are vital is headquarter' evaluation of each SBU ; strategic controls are critical when the head of SBUs evaluate their divisions' performances. Strategic controls are also critical to the headquarters efforts to determine whether the company has formed an effective