In which management structure do operations function independently across various areas?

In a territorial structure, operations are organized based on different geographical regions or territories, allowing each area to function independently. This type of management structure empowers local managers to make decisions relevant to their specific markets and regions, enabling them to respond effectively to local demands and conditions. By decentralizing operations in this way, the company can tailor its products, marketing, and service strategies to fit the cultural and economic nuances of each territory.

In contrast, other structures like the functional structure group operations based on specific functions (such as marketing, finance, and production) rather than regions, which can lead to a more centralized decision-making process. The matrix structure involves a dual reporting system where employees report to both functional and project managers, blending independence with collaboration. The product structure focuses on different product lines, allowing teams to concentrate on individual products rather than geographic areas.

Therefore, the key distinction of the territorial structure is its emphasis on regional autonomy, fostering independent, area-specific operations that can better address local market needs.