Which of the following is true of international divisions that are structured as geographical organizations?
A) Geographical organizations are operating units under the export department.
B) Geographical organizations are usually formed to implement whole-channel supply chains.
C) Geographical organizations are managed by product managers, each responsible for different product groups.
D) Geographical organizations are inadequate if the firm moves into joint ventures or direct investments.
E) Geographical organizations are managed by country managers responsible for salespeople, distributors, and licensees in their respective countries.

Question

Quizplus · Accepted Answer

Geographical organizations are structured as separate operating units, managed by country managers responsible for salespeople, distributors, and licensees in their respective countries. This structure facilitates local responsiveness and adaptation to local market conditions. It is often used in firms with a multidomestic strategy, where the emphasis is on decentralization and differentiation to meet local needs. Product-based organizations, on the other hand, are more suitable for firms with a global strategy, where the emphasis is on standardization and integration to achieve economies of scale and scope.

Which of the Following Is True of International Divisions That