Division refers to the organizational structure that combines related R&D, procurement, production and sales departments into a relatively independent unit based on a certain product, region or customer.

This department must have three basic elements: a relatively independent market; Relatively independent interests; Relatively independent autonomy. It is characterized by the establishment of a number of business divisions under the leadership of the head office. Each business division has its own independent products or markets, and has strong autonomy in management and independent accounting. This is a decentralized management structure.

Division system is also called M-type organizational structure, that is, multi-unit enterprises, decentralized organizations, or departmental structures.