Air Asia Berhad implements geographic organizational structure in their management. This clip shows few advantages and disadvantages of implementing such structure in their organization

1. AirAsia Berhad
Organizational Structure
Akmal C.

4. Geographic Organizational Structure
• Used for organizations that have offices and business units in different
geographic areas
• Defines a reporting and functional system across multiple locations
• Allow an organization’s offices to operate individually while adhering to
company policies and values
• Respective executives at each location

5. Advantages
• Foster a closer relationship between places worldwide
• Improve the standards as prescribed or used in the ranking of global
requirements such as copyright law
• Use the expertise of all staff worldwide; speaking according to their
geographical locations
• Reduce organization cost by putting the resources of the org. near the
locations.

6. Disadvantages
• Difficulty in coordinating the departments in the geographical areas
• Lack of control might occur
• Cannot guarantee the full loyalty of employees
• The existence of a change in products (travelling) and services as cultural
factors, physical and weather