This is an Organisational Structure organised by its PRODUCTS. Each division or Product line will act as mini companies within the main organisation. They will research, market and produce their own product. An example is a car firm. They would have 8 or so DIFFERENT types of car. MPV's, Saloons, Hatchbacks, Convertibles and so on. Problems now inevitably include the duplication of resources 8 times over. The company may need 8 research teams, 8 marketing teams, 8 production teams and so on. Hope this has made it a little clearer. Am doing an assignment on this as I type this out so it should be fresh. This is how I've interpreted it...