Why does a divisional structure increase our shipping costs? Alison - The mid-level managers in the SBUs only care about pleasing their bosses so they don't communicate with other SBUs. Your SBUs are shipping across several countries, so they are running into currency exchange issues. In a divisional structure, you have redundancies like multiple finance departments or multiple marketing groups, which increase costs. Each of your SBUs has to send product to the same stores, but they can't coordinate to reap the economies of scale