For United Furniture, I would like it propose the Divisional structure which is comprised of three sub structures i.e. product, market and geographic. This was also important because UF started diversifying and expanding its ventures abroad. A divisional structure creates a series of business units to produce a specific kind of product for a specific kind of customer. Every division is comprised of different functions collected together to produce the required product. The whole idea behind proposing this kind of structure is to produce smaller more manageable units within an organization.
Divisional structures are of three kinds and managers choose their desired structure according to the type of good and service the organization is producing. As UF is specializing in all three sub divisions, it comes as no surprise that the company would be a major success if it incorporates all three kinds of structures. The product structure is used when managers organize a division according to the type of goods or service the organization produces. The geographic structure is used when managers organize divisions according to the type and number of countries they operate in and when it’s according to the kind of customers targeted the market structure can be adopted. For UF, I suggest a hybrid of all three structures as UF is operating globally, addresses a wide range of customers and is producing an even bigger range of product cum service base every year. I will discuss the characteristics of each of the aforementioned sub parts of division structure in the following paragraphs.
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