A rapidly expanding retail organization continues to be tightly controlled by its original small management team. Which of the following is a potential risk in this vertically centralized organization?
A.
Lack of coordination among different business units.
B.
Operational decisions are inconsistent with organizational goals.
C is correct, decision made by small management team may not fully capitalize on the insights and local knowledge of those working closely with specific operations, regions, or products.
I think A is correct. Why a vertically centralized organization has a risk to make suboptimal decisions?
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Crazyhydra
4 months agoTico
2 years, 5 months ago