You are the CEO of a multinational corporation that has grown organically over the past 30 years. You know that your organizational structure is long overdue for a major change. The coordination of activities between the various units is not as good as it could be. Some parts of the organization are already centralized, such as administration; other parts, such as production, sales and marketing, and distribution, are largely decentralized. You want to consider the options carefully and make an assessment of their implications for the corporation.
1. How might centralization help to fully coordinate the operations of the organization?
Who is likely to be affected by centralization?
2. Now consider the case for increased decentralization and where this option might, in fact, be beneficial to the organization. Will it mean more flexibility?