ZIMSEC O Level Business Studies Notes: Geographical based organisational structure
- This is when an organisations divisions, operations, duties and positions are based geographical area, country, regions, provinces, towns or districts
- Usually there is a Head Quarters to which all the subdivisions and their related personnel report to
- The head quarters administers core functions such as (strategic) planning while the subdivision are in charge of tactical and operational planning
- An example is that of a multinational business such as BP Global (formerly known as British Petroleum)
- They have a headquarters in the United Kingdom which is in charge of all its operations under a company president
- In each region (continent) they have officials in charge who report to the head quarters
- In each country including Zimbabwe they have staff who report to these regional offices
| Advantages | Disadvantages |
|---|---|
| There is an emphasis on local conditions | It can be difficult to exert control in such an organisation as it is spread |
| Faster communication at local level | Delayed communication with Head Quarters |
| Provides a training opportunity for trainee managers | High costs |
| Faster local decision making | Duplication of effort across regions |
| Can quickly adapt to local changes | There can be conflicts between local and organisational wide goals |
To access more topics go to the O Level Business Notes page
