What type of organizational structure arranges the hierarchy according to geographic locations?

The geography-based structure organizes a company's hierarchy and operations according to specific geographical regions or locations. This type of structure is particularly beneficial for multinational companies that operate in diverse markets across various countries. By arranging the organization geographically, companies can effectively address the unique needs and preferences of local customers, respond more quickly to market changes, and adapt their strategies according to regional demands.

This structure allows for the decentralization of decision-making, empowering regional managers to tailor operations and marketing strategies to better suit their local markets. It can also enhance communication and facilitate the speedy execution of local strategies, which are crucial aspects in a globally competitive environment.

In contrast, other organizational structures focus on aspects like product lines or the vertical management hierarchy rather than geographical distinctions, which would not provide the same level of responsiveness to regional market dynamics.