Multidivisional organization structure

Multidivisional organization structure is as the product range of the organization becomes larger and more diverse, similar parts of the product range are grouped together into divisions, each having its own functional management team. Each division has some degree of profit responsibility and reports to the headquarters, which usually retains a significant role in the development of business strategy. Sometimes this is shortened to M-Form structure. See also Matrix organization structure.

Definitions

According to the Corporate Strategy by Lynch (4th edition),

Multidivisional organization structure. As the product range of the organization becomes larger and more diverse, similar parts of the product range are grouped together into divisions, each having its own functional management team. Each division has some degree of profit responsibility and reports to the headquarters, which usually retains a significant role in the development of business strategy. Sometimes this is shortened to M-Form structure. See also Matrix organization structure.