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In class, we reviewed a geographic organizational structure that many firms use. What are some of the key drawbacks to this structure? A. This structure
In class, we reviewed a "geographic organizational structure" that many firms use. What are some of the key drawbacks to this structure? A. This structure is ideal from a cost consideration. For example, it is inexpensive to maintain the same functional area (finance, marketing, manufacturing) in each geography in which the firm is present. "Know-how" and best practices are easily shared across the firm. That said, this structure is not suitable for a global business. B. This structure can be costly to implement. There can be redundancies as well. For example, if each geographical area has its own marketing or finance function, this can lead to redundancies. Unless these functional silos in each geography are speaking to each other and sharing best practices, there could be wasted opportunities to leverage "know-how" and best practices. C. This structure is ideal for a firm that primarily operates domestically but is not suitable for an international business. D. This structure can lead to efficiencies across functional areas of the firm. It is built to deter firms from developing a "silo-effect
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