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What is the crux differentiating factor between Divisional, Multi-Divisional and SBU structure?

Strategic Management

If firms could adopt SBU structure, why they dont just do it. What is need for Divisional and multi-divisional? Is the crux 'multitude of business'? I am having a hard time understanding the basic differentiating these 3. Could you point out in brief?

Kumarjit Dey

CA Inter

★ 4K+

22-Nov-20 02:06

348

Answers (1)

Divisional and multi divisional are same. SBU is a improvisation over divisional where a lot of strategic decisions are taken by the divisions. SBU is like a business inside a business.