Creative hierarchy

An organization has a sales department with four levels, as shown in the following logical data model:

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Zones are divided into Regions, Regions into Districts, and Districts into Territories. Assume there will always be these four levels, and that levels cannot be skipped (e.g. Territory 123 cannot report directly to Region 456). This logical data model is implemented as the following physical data model:
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Sales Hierarchy represents a specific combination of Zone, Region, and District, which is then divided into Territories.

What are the pros and cons with using this physical structure?

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