Regional Structure

• What is a regional organisational structure?

  The company is divided based on geographical regions
• What are the advantages of using a regional organisational structure?

  • Better responsiveness to local markets - tailors strategies to customer needs
  • More decision-making power for local managers - improves efficiency
• What are the disadvantages of using a regional organisational structure?

  • Duplication of resources - lower efficiency - higher unit costs
  • Risk of inconsistency - branding and strategy may vary between regions
• When is a regional structure best used?

  • Lots of regional variations between customer needs
  • Global brands like Mcdonalds