Organisations and management accounting
Organisations and management accounting

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Organisations and management accounting

3.3 Geographical structure

Described image
Figure 6 A geographical structure

A variation on the product or service structure is to group staff by physical location – for example, by region, country or continent. This has advantages for international organisations because there are likely to be big differences in markets, languages and cultures. National issues are usually best identified locally. However, there are several disadvantages to structuring by location:

  • information flows between staff in different locations can be costly and problematic
  • there may be duplication of activities, typically, support functions such as accounting, human resources and information technology
  • it may be difficult to achieve integrated strategies across a number of different countries.

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