A divisional structure is an organizational framework where a company is divided into semi-autonomous units or divisions. Each division operates independently and focuses on specific products, services, or markets. This structure allows for greater flexibility and quicker decision-making, as each division can respond to its unique challenges and opportunities. In a divisional structure, divisions may be organized by product line, geographic region, or customer type. This setup enables better resource allocation and specialized management, as each division can tailor its strategies to meet the needs of its target audience while still aligning with the overall goals of the company.