Answer to Question 1
As organizations grow in both size and complexity, they often renew their strategy to focus on achieving greater external focus. Most typically, they turn to a divisional structure as a way of reinforcing behaviors that respond to the marketplace. All activities associated with a particular product or family of products are brought together in a divisional unit. The object of the divisional structure, whether it is focused on products, customer groups, or geographic locations, is to reinforce a market-focused strategy. Product divisions and SBUs pay close attention to the expectations and needs of customers for their particular offerings, while geographic divisions can attend to the special requirements and habits of the customers in their regions.
It is precisely that focused attention on the external marketplace that, it is hoped, allows companies organized divisionally to meet the challenge of coordination faced by functionally structured companies. By concentrating on a clearly defined and understood market segment, divisions seek to win by offering new products and services. Rapid responsiveness to shifting market realities is the goal.
Answer to Question 2
b
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