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The divisional structure or product structure consists of self-contained divisions. A division is a collection of functions which produce a product. It also utilizes a plan to compete and operate as a separate business or profit center.
Divisions are distinct parts of a business. If these divisions are all part of the same company, then that company is legally responsible for all of the obligations and debts of the divisions. [1] [2] [3] In the banking industry, an example would be East West Bancorp and its primary subsidiary, East West Bank. [4]
Choosing a structure for a company is an important decision and must be strategically thought out because it could either aid or harm the making of business. The structure must also be a good fit for the type of activities, goals, and vision of the company. [3] The organizational structure is a reflection of how conveniently business is conducted.
A business plan is a formal written document containing the goals of a business, ... Typical structure for a business plan for a start-up venture [15]
Unlike the M-form, the U-form is a business structure by which the senior management of a corporation closely supervises its various component "departments" and retains control of all strategic and decision making processes. While this model allowed for unification and consistency, it limited companies from growing and expanding into other markets.
"The PBC is a structure used by many others that requires the company to balance shareholder interests, stakeholder interests, and a public benefit interest in its decisionmaking," the ...
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