Dividing a class – especially a large class – into smaller groups might be useful for a variety of reasons. Some of these might include:
Project groups: Enable students to work together toward a common assignment (usually with a common, or shared, grade) by creating groups with all three shared workshpaces (Discussions, Locker, Dropbox).
Discussion groups: Create separate discussion areas for smaller groups of students to foster a sense of community and encourage greater participation in discussion forums.
Restrict access to material: Create groups and use Release Conditions to provide appropriate materials to specific sets of students.
Tests and quizzes: Create several groups and multiple versions of your quiz. Use Release Conditions to give each group access to a different quiz.
Study groups: Create a group discussion area to allow collaborative exam prepration.