Which term refers to an organizational model where divisions or departments are organized by location in a specific country or region?

Which term refers to an organizational model where divisions or departments are organized by location in a specific country or region?

• A. Global organization
• B. Geographic structure
• C. Global staffing
• D. Global integration

Answer: (B)

Geographic structure refers to organizing divisions by location in a specific country or region. In this model, the company creates regional or country-based units—like North America, Europe, and Asia-Pacific—each with its own sales, marketing, and operations tailored to local conditions. This arrangement gives regional managers authority to respond to market differences, regulatory requirements, and cultural preferences, enabling faster local decision making and greater market relevance while still aligning with the company’s overall strategy. The other terms describe different approaches: a global organization tends to centralize decision making and standardize practices across all markets; global staffing focuses on how employees are deployed across borders; global integration emphasizes coordinating processes across markets.

Geographic structure refers to organizing divisions by location in a specific country or region. In this model, the company creates regional or country-based units—like North America, Europe, and Asia-Pacific—each with its own sales, marketing, and operations tailored to local conditions. This arrangement gives regional managers authority to respond to market differences, regulatory requirements, and cultural preferences, enabling faster local decision making and greater market relevance while still aligning with the company’s overall strategy.

The other terms describe different approaches: a global organization tends to centralize decision making and standardize practices across all markets; global staffing focuses on how employees are deployed across borders; global integration emphasizes coordinating processes across markets.