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

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

Kumarjit Dey

CA Inter


22-Nov-20 02:06


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.

Suraj Lakhotia

Suraj Lakhotia


22-Nov-20 08:15