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┬ásuch 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
There is an emphasis on local conditionsIt can be difficult to exert control in such an organisation as it is spread
Faster communication at local levelDelayed communication with Head Quarters
Provides a training opportunity for trainee managersHigh costs
Faster local decision makingDuplication of effort across regions
Can quickly adapt to local changesThere can be conflicts between local and organisational wide goals

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