Regional

• What is a regional organizational structure?

  Division of an organization by geographic regions
• What departments are typically found in each regional division?

  Marketing and operations departments
• What is one advantage of regional organizational structures?

  Local adaptation to regional needs
• How does local adaptation benefit an organization?

  It tailors strategies to specific regional needs
• What can improved customer satisfaction lead to?

  Increased sales
• Why is a regional organizational structure considered streamlined?

  Each region has its own departments
• What does regional autonomy allow for in decision-making?

  Faster decision-making
• How does decentralization contribute to flexibility in regional structures?

  It allows easier adaptation to changes
• What is a disadvantage of regional organizational structures?

  Risk of regional silos
• What does the term "risk of silos" refer to?

  Lack of communication between regions
• What is a potential issue with standardization in regional structures?

  Inconsistency in products and processes
• What can result from having multiple regional marketing departments?

  Cost duplications
• What is a potential consequence of diseconomies of scale?

  Higher average cost per unit
• How can higher prices affect market sensitivity?

  It may lead to price sensitivity issues
• How are finance and HRM typically structured in regional organizations?

  Often centralized
• What is the benefit of a centralized finance and HRM in regional structures?

  Strikes a balance between pros and cons
• What are the advantages of regional organizational structures?

  • Local adaptation to regional needs
  • Improved customer satisfaction
  • Streamlined operations with regional departments
  • Faster decision-making and increased efficiency
  • Greater flexibility due to decentralization
• What are the disadvantages of regional organizational structures?

  • Risk of regional silos and poor communication
  • Lack of standardization in products and processes
  • Cost duplications across regions
  • Potential diseconomies of scale leading to higher costs