Multidivisional structures are based on the reality that many firms consist of several distinct operating segments or businesses, or geographical regions.

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Multidivisional structures are designed to group different segments or businesses within a single organization and provide more focused attention to each of them. This is done to address the unique needs and challenges of each segment, and to allow for more efficient resource allocation and decision-making.

Multidivisional Structures Are Based on the Reality That Many Firms