Organizing locations

After reading this post on how to organize people in Obsidian, I finally started doing it myself.

Immediately I was faced with a new problem: how do I organize locations? I could think of two ways to deal with it from the top of my head:

• Each location has its own note, which is then cross-linked. So department would be linked to company which would be linked to the city where it is located.
• Hierarchy inside a few notes. This would look like [[country#subregion#city#company#department]]

The second option would result in fewer scattered notes, but I'm unsure if that is actually desirable.

What system do you have?