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Discuss the use of geographical grouping.

Discuss the use of geographical grouping.

Answers

Lydia
Advantages
? Each division can meet the needs of local markets eg different tastes or fashions in different towns or countries
? The business can react to changing external (PESTEC) factors quickly
? Easy to identify a failing division
o Can hold divisional managers accountable
? Can communicate better with the local area eg different languages
Disadvantages
? Duplication of resources, such as administration staff or IT equipment across each division
? Divisions may compete against each other
? A new division must be established if a new area is targeted
lydiajane74 answered the question on May 31, 2018 at 17:23

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