Which structure primarily focuses on the company's geographic locations rather than products or functions?

The geography-based structure is designed to prioritize the company's geographic locations when organizing its operations. This structure allows businesses to effectively manage and respond to regional market demands and cultural preferences, which can differ significantly across various locations. By focusing on geographic areas, organizations can tailor their strategies, marketing, and product offerings to suit the specific needs of customers in different regions, potentially increasing customer satisfaction and market effectiveness.

This structure is particularly beneficial for multinational companies that must navigate diverse markets and regulatory environments. It enables the organization to be more agile and responsive to local market conditions, fostering better communication and decision-making at local levels.

In contrast, a product-based structure organizes operations around specific products, which may not take geographic variations into account as effectively. A tall organizational structure often implies multiple layers of management, which can hinder agility and responsiveness. Similarly, a function-based structure organizes departments by specific business functions (e.g., marketing, finance) rather than focusing on geography, which may limit the organization’s ability to address local market needs effectively.