PRC-3 · Chapter 3 · Question 62 of 70
A global beverage brand establishes autonomous operational units for 'North America', 'Europe', and 'Asia-Pacific'. Each unit adapts its marketing to local tastes. What organizational structure is this?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Geographic divisional structure
Explanation
When a firm creates major divisions based on different physical territories or regions to serve local markets better, it uses a geographic divisional structure.
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