Which organisational structure is based on geographical areas?

The geographic structure is an organizational design that divides a company based on different geographical areas or regions. This approach allows a business to tailor its operations, marketing, and sales strategies to fit the specific needs and cultural nuances of each region. By organizing teams to focus on specific areas, companies can effectively address local customer preferences, comply with regional regulations, and enhance service delivery by placing decision-making closer to customers.

This structure is particularly beneficial for multinational corporations or businesses that operate in a diverse set of locales, as it enables them to respond quickly to local market changes and customer demands. It also promotes greater accountability and performance measurement for each geographic area, as managers are often responsible for their region's success.

Other organizational structures, such as functional, matrix, or product-based structures, focus on departmental functions, varying reporting lines, or specific product lines rather than geographic divisions. These alternatives may not offer the same level of local customization and responsiveness that a geographic structure provides.