Divisional organisation structure is classic organisation design which is modern organisation design base and it is used by organisations in stages of growth and production program expansion. Their needs are no longer met by functional organisational structure. Processes of diversification, divisionalization and decentralisation precede the designing of divisional organisation structure and the key is on forming divisions as autonomous parts designed by product, territory or customers categories. It exists in three forms; production organisation structure, territorial organisation structure and customer-oriented organisation structure. Divisions are designed according to products, territory on which organisation operates or customer categories. The advantages of divisional organisation structure are focusing on products, territory and customers and high level of autonomy which ensures decision making without waiting for top management confirmation. Alongside this advantages, there are several different disadvantages every organisational structure has and in divisional organisational structure they include high costs caused by parallel tasks of the same business functions in different divisions. High costs are also caused by the need of highly educated staff, and some difficulties occur in keeping the control from the top of the organisation. Every organisation has different needs so divisional organisation structure will not suit every organisation. Nevertheless, rightful use of advantages of this organisational structure can bring optimal results for the organisation that is using it. Three examples of the divisional organisation structure can be found in paper: Sunce koncern d.d., Procter & Gamble and Podravka d.d.