That is, a relatively independent market/product; relatively independent interests; relatively independent autonomy.
The product division is mainly based on the products produced by the enterprise, and the activities related to the production of a certain product are completely email list placed in the same product department, and then the functional departments are subdivided in the product department to carry out the work of producing the product. In this structural form, some common functions are often concentrated in the design, and are delegated by the superior to guide each product department to achieve resource sharing.
2) Regional division system
For a geographically dispersed business, division of divisions by region is a more common approach. The original is to centralize the business work in a certain area or area, and assign a manager to take charge of it.
3) Advantages of business unit structure
The division of responsibilities and rights is relatively clear, which can better mobilize the enthusiasm of management personnel;
The division system takes profit responsibility as the core, which can ensure the company to obtain stable profits;
Through the independent production and operation activities of business departments, we can continuously cultivate senior management talents for the company.
4) Disadvantages of the division
More highly qualified professionals are needed to manage the division;
There are many management institutions, the proportion of management personnel is large, and the requirements for business department managers are high;
Decentralization may supersede company leadership and weaken control over business units;
The competition among business divisions is fierce, internal friction may occur, and coordination is also difficult.
Scope of application: It is suitable for large enterprises with large scale, variety and complex technology.