Which structure consists of separate business units working collaboratively on specific products for defined customers?

The divisional structure is designed to allow separate business units to operate independently while collaborating on specific products targeted toward defined customer segments. Each division in this structure typically focuses on a particular product line or geographic market, which enables it to tailor its strategies and operations to effectively meet the needs of that specific customer base.

In this setup, each division functions like a small business, with its own resources and objectives, fostering innovation and responsiveness to market changes. Collaboration across divisions can enhance efficiency and leverage diverse expertise, making it easier to develop specialized products that cater to distinct customer requirements.

Other structures, like the functional structure, group employees based on their specialized roles (such as marketing, finance, and operations) rather than focusing on specific products or customer needs. The matrix structure might combine elements of both functional and divisional setups but often leads to complexities in reporting relationships due to dual management. The horizontal structure emphasizes flat hierarchies and collaboration but may not necessarily be organized around specific product lines like the divisional structure.