The amount of centralization or decentralization should fit the firm’s strategy. For example, Johnson & Johnson gives almost complete authority to its 180 operating companies to develop and market their own products. Decentralization fits the corporate strategy of empowerment that gets each division close to customers so it can speedily adapt to its needs.17 Taking the opposite approach, Larry Ellison at Oracle is using technology to centralize operations, cut costs, and get everyone focused, as described in the Digital, Inc. box.

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