Centralised and decentralised businesses

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  • Created by: AnnabelH
  • Created on: 16-03-16 12:33

Centralised and decentralised businesses

One main thing a business needs to decide is where decison making power is located within the business structure.

The choice between centralised or decentralised is not an either/or choice. Most large businesses necessarily involve a degree of decentralisation when it starts to operate from several locations or it adds new business units and markets to enable easy decison making. 

Centralised - The concentration of managment and decison making power is located at the top of a a businesse hierachy, and are handled strictly at the top or the executive level. 

Advanatges to centralised businesses 

  • Easier to implement common policies and


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