With Regard to the Issue of Geographic Vs

question 219

Short Answer

With regard to the issue of geographic vs. product departmentalization, it is correct to say that
it is generally fairly easy for managers to decide whether to use geographical or product departmentalization.
geographic departmentalization reduces the likelihood of duplicate production and other facilities.
geographic departmentalization may lead to compartmentalization of knowledge in each geographic area.
many years ago it made more sense to use product departmentalization, but now more and more companies are moving to geographic departmentalization
PepsiCo was formerly organized around product areas, but it recently moved to geographic departmentalization

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Definitions:

Constant Growth

A model in finance that assumes a stock’s dividends will continue to grow at a uniform rate indefinitely, used to estimate the stock's current value.

Dividends

Proceeds allocated by a corporation to its share owners, principally derived from the business's earnings.

Rate Of Return

The fiscal growth or shrinkage in an investment's value during a particular lapse of time, marked as a percentage of the initial investment expense.

Annual Dividend

The total amount of dividends that a company pays out to its shareholders over a year.