Final answer:
When a company organizes around products, customers, or geography, it adopts a product-based, customer-based, or geographical organizational structure, respectively.
Step-by-step explanation:
When a company organizes around specific criteria such as products, customers, or geography, they have adopted a form of organizational structure. This structure is instrumental in defining how a company operates internally and how it interacts with the external market. Organizing by product results in a product-based structure, whereby each product line is managed separately.
Customer-based structures are tailored to the needs of different customer groups, ensuring focused and effective market outreach. Geographical structures allow businesses to address the unique demands of various regions and cater to local market conditions effectively. This multidimensional approach is driven by market structure and competition, influencing decisions such as production methods, product pricing, and output levels.