148 Figure 3.5: Geographic
divisional structure Advantages of Place or Geographic Division • Managers develop expertise in solving problems unique to one location.
• Managers are familiar with customers problems within the division.
• Organisation can adapt to national differences.
• It places responsibilities
at lower levels • It provides valuable training grounds for managers.
Disadvantages of Place or Geographic Division •
All functions of accounting, purchasing,
manufacturing, customer services are duplicated at each division.
• It creates problems of control to top management over the operation of local divisions.
• May cause conflicts between each location’s goals and corporate goals.
• May require extensive rules and regulations to coordinate and ensure uniformity of quality among locations.
• Requires managers with general management. c)
Share with your friends: 
