Shrey runs a door locks manufacturing factory

Shrey runs a door locks manufacturing factory. He wants to expand his business. For this, he wants to enter into manufacturing of locks for cars such as steering lock, wheel lock, gear lock, central car lock, etc as an ancillary company. By doing this, his company will be able to provide many products to car manufacturers. Which type of organisation structure will he choose for his factory and why? State any five advantages of this organisation structure.
Shrey and Co are running a shoe manufacturing company successfully. So, they planned to expand their business activities by adding leather bags, belts and - garments. Which type of structure would you recommend and why?

Divisional Structure
An organisation structure in which various departments are created on the basis of products, territory or region, is called a divisional structure.
Each unit has a divisional manager, who is responsible for performance and has authority over their division. Each division is further divided into functional units like production, sales, finance, etc.The divisional head is solely responsible for the profit or loss of their division.