Comparison of Functional and Divisional Organizational Structure 
1.1 Compare and contrast Gregg’s organisational structure and culture with another organisation of your choice
The two businesses’ which I will be comparing include; Greggs PLC (public limited company), which utilises the “divisional structure” (bakeryinfo.co.uk, 2008) and Tesco’s PLC (public limited company), which utilises the “functional structure”.
Functional – The functional structure is an organisational structure type which sees the business’s employees’ grouped depending on their hierarchical rank within the business, said employees will be managed via strict lines of authority, and everyone within the business will ultimately report to a single person, typically the CEO (chief executive officer). A business which uses the functional structure is set up as to allow each portion of the business to be grouped into departments according to their purpose, for example, with the functional structure; a business would have a department for production, human resources, and sales (businessdictionary.com, n.d).
Divisional – The divisional structure is an organisational structure type which organises business activity around geographical, market, or product and service groups; the aforementioned groups encompass the business’s employees whom are responsible and are specialised for such tasks, for example, with the divisional structure, a business would have an EU division as well as a US division. With the divisional structure, each group contains a set of functions, meaning both the EU and US divisions would handle their own marketing, sales, and production. The divisional structure is best suited for larger businesses as the divisional structure is specifically there for businesses which operate in many markets and in many different countries, the fact that each division handles its own affairs independently from the other divisions is beneficial since local conditions may change without warning (businessdictionary.com, n.d).
(Writing, n.d)
Greggs uses the
The two businesses’ which I will be comparing include; Greggs PLC (public limited company), which utilises the “divisional structure” (bakeryinfo.co.uk, 2008) and Tesco’s PLC (public limited company), which utilises the “functional structure”.
Functional – The functional structure is an organisational structure type which sees the business’s employees’ grouped depending on their hierarchical rank within the business, said employees will be managed via strict lines of authority, and everyone within the business will ultimately report to a single person, typically the CEO (chief executive officer). A business which uses the functional structure is set up as to allow each portion of the business to be grouped into departments according to their purpose, for example, with the functional structure; a business would have a department for production, human resources, and sales (businessdictionary.com, n.d).
Divisional – The divisional structure is an organisational structure type which organises business activity around geographical, market, or product and service groups; the aforementioned groups encompass the business’s employees whom are responsible and are specialised for such tasks, for example, with the divisional structure, a business would have an EU division as well as a US division. With the divisional structure, each group contains a set of functions, meaning both the EU and US divisions would handle their own marketing, sales, and production. The divisional structure is best suited for larger businesses as the divisional structure is specifically there for businesses which operate in many markets and in many different countries, the fact that each division handles its own affairs independently from the other divisions is beneficial since local conditions may change without warning (businessdictionary.com, n.d).
(Writing, n.d)
Greggs uses the