By focusing on certain groups of consumers – consumer specialization; on served territories – regional specialization. In our country, similar management structures have been widely introduced since. The 60s in the form of the creation of production associations. Advantages of a divisional structure: it ensures the management of diversified enterprises.
Measures to develop pricing policy.
With a total number of employees of the order of hundreds of thousands and territorially remote divisions; provides greater flexibility and faster Electrical Contractors List response to changes in the enterprise environment in comparison with the linear and linear – staff; when expanding the boundaries of independence of the departments, they become “profit centers”, actively working to improve the efficiency and quality of production.
Closer relationship between production and consumers. Disadvantages of the divisional structure: a large number of “floors” of the management vertical; between the workers and the production manager of the unit – 3 or more levels of management, between the workers and the management of the company – 5 or more; disunity of headquarters structures of departments from company headquarters.