[MUSIC] The second organizational structure I want to share with you is the Divisional structure. And there are some commonalities here with the functional structure. And they are, that again, we have very much a centralized structure here with key people, key senior people making the decisions. And again, it's very much about controlling the people and the operations of the organization. Like the functional structure, we have the very senior, the Board of Directors, the most senior level, people within the organization. And the difference now comes in from the functional structure. So a divisional structure will break up the organization into products, all services or even different geographies. So the organization has very different products, services, or countries to which it operates within. So if we take, for example, Virgin again. A product could be the airline. Another product could be the railway, let's just say for example. These are called the Divisions. And an organization will have as many divisions as it needs. So it may have a division for every single country that it operates in. Because it realizes that every country is quite bespoke, has differences and therefore needs to have its very own mini hierarchy with sort of the helicopter view of the boards overhead. And then what's familiar now with the functions is we do have under each product or each division or geography or this, we have these functions. So again, using the same example, production, purchasing, human resources. Now the issue with this structure, again, we're in silos in the sense that we're only involved with the product, the division that we're working within, we're employed within. So we don't have a broader view of the organization, which is important, because if an organization has an overall mission, we all need to be working towards achieving the overall mission. The other issue is Duplication of Resources. So in every division you may have human resource manager, you may have finance manager, you may have a marketing manager, a sales manager, a production manager, a policy manager. So it's resource heavy. Maybe the size of the organization, the fact that they're so different just defies that. But often especially in this highly competitive tough economic times, organizations are trying to merge some of these generic functions together. So I talked earlier about the Kraft-Heinz company merger. Now It's likely that they want to streamline some of these activities and where they can pull resources, create synergies together. So they can then invest that money on innovation, marketing, advertising. So it's positive in terms of a very large organization with very, very different product services or geographies in which it's operating within but it can be quite costly. So what you might find is organizations that come together only to create synergies begin to have a human resources for all their different divisions. And that's the divisional structure. [MUSIC]