Sometimes, few business enterprises formulate their actions based on varied geographical regions & locales. And this particularly happens in the outbreak of businesses with several chains or branches at different places. Show Now the question arises, Is the technique of geographic departmentalization effective for an organization? And what role does it play in an organization? Take the example of a minor retail chain business or a yummy fast-food chain business with many branches everywhere. In this article, we shall discuss what exactly geographic departmentalization is? and how is it beneficial for an organization? Table of Contents
Geographic Departmentalization –Geographic Departmentalization is nothing but an organizational structure, which organizes people based on geographical location. The network establishes definite divisions for each locale. And, each of these divisions themselves acts as a company & combines varied kinds of personnel to perform myriad business functions. For instance, each of these divisions is supposed to possess its marketing, distribution, production department & sales department. So, with the method of geographic departmentalization in a company, the local divisions get the autonomy of operating any function as they like & in whatever manner they want. Also, the regional divisions under this structure possess the ability to both comprehend & react to different local preferences. Again, they seek but also pursue the across-the-board business policy. Those who maintained such departmentalization have proven efficiency and accomplished many productive regional, national & international projects in their organization. Geographic departmentalization is done in an organization for appealing to large corporations because large corporations may think that a geographical, organizational arrangement will enable them to fulfill diverse groups’ particular desires or requirements. The geographic decisions may establish based on different cultures, rules, customer preferences & languages. Also, many corporations get logistical benefits from this method of departmentalization. These logistical benefits include added financial benefits, reduction of cost, etc. Geographic Departmentalization – Pros
Geographic Departmentalization – Cons
Wrapping Up –Different businesses adopt different types of departmentalization techniques to expand their business and penetrate remote areas. Geographic departmentalization plays a vital role in reaching out targeted audiences residing in different areas. |