A2 Business 9609 | Divisional Organisational Structure Explained | Advantages & Disadvantages

Описание: In this A2 Business Studies (9609) lecture, we cover the Divisional Organisational Structure, one of the most important structure types used by large businesses operating with multiple products, regions, or customer groups.

A divisional structure divides a business into separate divisions, where each division has responsibility for its own performance. This structure is highly examinable because it links directly with business growth, decision-making, accountability, and efficiency.

✅ What You’ll Learn in This Video
• Meaning of divisional organisational structure
• Why large businesses use divisional structure
• Different ways divisions can be created:
• by product
• by geographical region
• by customer type / market segment
• Role of divisional managers
• Profit centres and accountability
• Advantages of divisional structure:
• faster decision-making
• clear accountability
• better focus on specific markets/products
• improved motivation for divisional managers
• Disadvantages of divisional structure:
• duplication of resources
• higher costs
• rivalry between divisions
• loss of economies of scale

🎯 Why This Topic Matters in Exams
• Frequently tested in A2 Business Paper 3 and Paper 4
• Strong evaluation topic for organisational efficiency
• Links well with growth strategies, leadership, and control
• Helps in case study answers about multi-product/multinational firms

👨‍🏫 About Sir Osama Musani

Sir Osama Musani is a Cambridge-certified Business teacher known for simplifying complex organisational structure topics and teaching examiner-focused evaluation strategies.

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