When managers organize divisions according to the type of customers they focus on, what type of structure do they adopt?

When managers organize divisions based on the type of customers they focus on, they are employing a market structure. This approach allows organizations to cater specifically to the needs and preferences of different customer segments, enhancing responsiveness and tailoring strategies effectively to each market's unique demands. In a market structure, divisions are grouped by the characteristics and behaviors of specific customer groups, whether they are target demographics, industry sectors, or geographic markets.

This structure contrasts with others, such as geographical, product, or functional structures, which categorize divisions based on location, specific products offered, or specialized functions within the organization, respectively. By focusing on customer types, managers can ensure that the organization aligns its resources and efforts with the varying needs of its clientele, ultimately leading to improved customer satisfaction and business performance.