This PPT slide, part of the 103-slide Organization Design Toolkit PowerPoint presentation, presents a framework for a geographic-based organizational structure, emphasizing how companies can optimize their operations by aligning them with specific regional markets. Key features highlight a structure that organizes around the geographies where products are sold, allowing for direct reporting to the board. This approach minimizes hierarchical layers, enabling division management to take on more responsibility. It also clarifies the separation of strategy and execution, which can enhance operational efficiency.
The slide identifies 2 primary categories: "Appropriate for" and "Advantages." The first section outlines scenarios where this structure is beneficial, such as organizations operating across diverse national or international landscapes. It emphasizes the importance of understanding local business environments and customer needs, suggesting that local production can be more effective than transporting goods.
Under "Advantages," the slide notes that this structure fosters recognition of local cultures and operational conditions, enhancing customer closeness. Clear geographic divisions are said to promote accountability and control, making it easier to introduce new products into specific markets.
However, the slide also addresses limitations. It points out potential inefficiencies due to duplicated efforts, which can undermine economies of scale. The challenge of maintaining consistent global practices while adapting to local conditions can create inconsistencies in product delivery. Implementing changes across various divisions may be cumbersome, and conflicts can arise between regional units and headquarters. Additionally, competition for resources among business units can further complicate the operational landscape.
This slide serves as a strategic tool for executives considering a geographic-based structure, providing insights into both its benefits and challenges.
This slide is part of the Organization Design Toolkit PowerPoint presentation.
This presentation is created by a team of ex-EY consultants. It provides a robust framework used by tier-1 strategy consulting firms for Organizational Design and its implementation.
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Consulting Frameworks Organizational Design Gap Analysis Organizational Structure Local Culture Production
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