nd customer service. Example of this structure can be found in East Africa Breweries Limited, Barclays Bank of Kenya.Advantages:1.Achieves efficiency through specialization2.Helps in developing of functional expertise3.It involves differentiation and delegation of daily operating decisions.5.Retains centralized control of strategic decision6.It tightly links structure to strategy by designating key activities as separate unitsDisadvantages1.It promotes narrow specialization and functional rivalry or conflict2.It creates difficulties in functional coordination and inter-functional decision making3.Limits development of general managers4.It has a strong potential for inter-functional conflicts arising from priorities being placed on functional areas and not the entire business3.2.1.Geographical StructureIt is common in firms that have grown by expanding the sale of their products of services to new geographical areas.In these areas, they frequently encounter differences that necessitate different approaches in producing, providing or selling services or products.The key strategic advantage of this structure is responsiveness to local market conditions. E.g. Coca Cola, Africa Online, Total Kenya Limited.Advantages 1.Allows tailoring of strategy to needs of each geographic market.2.It delegates profit or loss responsibility to lowest strategic level3.It improves functional coordination within the target market4.It takes advantage of economies of local operations5.It provides excellent training grounds for higher level general managersDisadvantages1.It poses problems of deciding whether head office should impose geographic uniformity or diversity should be allowed2.It makes it more difficult to maintain consistent company image or reputation from area to area3.Adds a layer of management with the responsibility of running geographic units4.It can result in duplication of customer services at head office and local levels3.2.2Divisional Structu...
