Mention the merits and demerits of the divisional structure.
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Merits:
All the pursuits are related to 1 product. It can be easily united
Quick decision making
Performance can be easily evaluated and remedial action can be taken
It promotes expansion and growth, as new divisions can be added
Demerits:
The equipment cannot be completely utilised
Disagreement may arise between the divisional heads
This gives rise to duplication of effort among its various divisions