Essay: What is a Geographical Structure

Sample Essay

Geographic structure:  A geographic structure is found in few organizations and this structure groups the employees together that are based on specific geographical locations. This structure is often used by companies that are located abroad and are termed as multinational corporations. This practice is usually opted by organizations that are based in United States. Employees are divided into different geographical aspects. For e.g. employees of a single organization would be divided as manager operations of the Asia Pacific, manager sales of Europe and etc (Gibson, 2008). Large business organization incorporates this strategy in order to divide different regions. Customers can be managed quite effectively with this approach.

Advantages of Geographic structure: the geographic structure is usually a complex structure but if it’s managed properly than organizations can easily achieve their goals. Customers develop a sense of attraction with the employees because the local employees are targeting their needs. Emphasis must be laid on particular areas and different marketing strategies can be applied proactively. In this manner organizations can benefit in both the short and the long run.

Disadvantages of Geographic structure: Besides certain advantages there are certain disadvantages of the geographic structure. Organizations won’t incur extra costs in functional structure and implementing an entire new structure would initiate certain new costs. These extra costs would have a negative effect on the performance of an organization and stakeholders of the organization might not support this approach. The complexity of this structure would add difficulty in management and the senior management of the organization would face difficulties in managing the employees.

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