Read the following passage and answer question.

Mr. Avinash has joined as a vice President of a manufacturing unit manufacturing garments. As a vice president, he was given the responsibility of increasing the production and efficiency of workers. He observed that managers relied on their personal judgement while attending to the problems they confronted. So he recommended work study which will result it saving time, effort and increasing efficiency. He also noticed that management was not honouring their commitment. He surveyed the market too. His study of the survey showed that demand can be increased through diversification.

He decided to diversify into footwear and handbags. He created divisions for garments, footwear and handbags and made the divisional managers responsible for performance. Each division is self contained with respect to various functions like production, purchases, finance, marketing etc. Now he decided to fill the various positions created with the right person. For this, he analysed the number and type of workers needed. He got his organisation registered at naukri.com.

'Each division is self contained with respect to various functions like production, purchase, marketing and finance'. Identify the type of organisational structure highlighted in the above statement.

Divisional structure

The correct answer is option (2) : Divisional structure