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Question
question 4
the global geographic division structure:
is most useful for new product lines
works well for products with rapidly changing technologies
works best if there are similar needs for the product across countries
may cause product planning on a global scale to be challenging
🆕 New Concept Discovered: Global Organizational Structures
Organizing a business by geographic regions rather than products.
Step 1: Understand global geographic division structure
A global geographic division structure organizes a multinational company's operations based on distinct geographic areas (such as North America, Europe, or Asia-Pacific). Under this structure, each regional division operates relatively autonomously to cater to local market demands, cultural preferences, and regional regulations.
Step 2: Evaluate the options
- "is most useful for new product lines": Incorrect. A global product division structure is typically better suited for introducing and managing diverse or new product lines.
- "works well for products with rapidly changing technologies": Incorrect. Rapidly changing technologies require close global coordination of research, development, and product standards, which is difficult when operations are fragmented geographically.
- "works best if there are similar needs for the product across countries": Incorrect. If product needs are highly standardized and similar worldwide, a global product division or a centralized global functional structure is more efficient. Geographic divisions are chosen precisely when local needs are highly different across regions.
- "may cause product planning on a global scale to be challenging": Correct. Because each geographic division focuses heavily on its own region's unique needs, standards, and marketing, it creates "silos." This decentralization makes it highly challenging to coordinate, standardize, and plan product development on a unified global scale.
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may cause product planning on a global scale to be challenging