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What kind of structure is very similar to a product structure, with the exception that geographic regions or countries—rather than products—define the organizational chart?

Functional
Product or Customer
Geographic
Matrix

asked
User Itismoej
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1 Answer

5 votes

Final answer:

A Geographic structure is where company divisions are defined by geographic regions or countries instead of products or services, allowing companies to tailor operations to local contexts while maintaining a central controlling headquarters.

Step-by-step explanation:

The structure you are referring to is known as a Geographic structure. This organizational structure is used by companies that operate in multiple geographic regions and is built around the regions or countries in which the company operates, instead of organizing around products or services. In a geographic structure, the organization's chart would show different branches or divisions based on physical locations, whether they are international countries or regions within a particular country.

Companies might choose this structure to better cater to local needs and to respond more quickly to changes in specific markets. Typically, each regional unit has its own set of functions, such as marketing, sales, and operations, tailored to its specific geographic context, drawing upon the concept of functional regions within geographical studies. However, despite the regional focus, all regions are tied back to the central headquarters which maintains control over the regional divisions.

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User Hoaz
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