Which of the following is true of geographical organizations?
A)Geographical organizations are operating units under the export department.
B)Geographical organizations are usually formed if the company is simply shipping out its goods.
C)Geographical organizations are managed by multiple country managers, each responsible for the whole organization's sales and profits.
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 typically managed by country managers who are responsible for overseeing salespeople, distributors, and licensees in their respective countries. They are often used by multinational corporations to ensure effective management of operations and sales in different geographic regions. Option A is incorrect as geographical organizations are not necessarily operating units under the export department. Option B is incorrect as the formation of geographical organizations does not depend on the mode of transportation of goods. Option C is incorrect as it contradicts the previous statement and is an inefficient way to manage geographical organizations. Option D is incorrect as geographical organizations can be adapted to suit the needs of a company involved in joint ventures or direct investments.

Which of the Following Is True of Geographical Organizations