Pearson eText International Business: The Challenges of Globalization -- Instant Access (Pearson+)
Pearson eText International Business: The Challenges of Globalization -- Instant Access (Pearson+)
9th Edition
ISBN: 9780136879879
Author: John Wild, Kenneth Wild
Publisher: PEARSON+
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Chapter 11.3, Problem 3QS3
Summary Introduction

To Determine:

Benefit of decentralized decision making in an organization

Introduction:

When fast changing national business environments put a premium on local responsiveness, here decentralized decision making plays a crucial role. Since subsidiary managers are in close contact with the local business environment it helps in meeting the needs and preferences of the local buyers.

Such environmental changes can be perceived by the local managers whereas, central mangers cannot perceive such changes. If the need and preferences are not met timely it can lead to weak competition, lost orders and stalled production

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