This is one of the most abused expressions, usually used in a happy clappy collaborative context to mean "let's split up responsibility and all do our bit to get the job done."
What it actually means is "let's increase our own power by breaking up the minions into isolated groups (so they can't link up and threaten our power base)".
Divide and Conquer or "Divide et impera" is all about power and control. It's a great phrase. Use it acerbically.
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