Advantages & Disadvantages of Dispersing Corporate Functions
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What are the advantages and disadvantages of dispersing corporate functions globally and is there a need for a corporation to be in a specific location (perhaps to utilize a virtura business climate)? Use actual concepts and facts to justify response.
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This posting gives you a step-by-step explanation of why multinationals should locate their corporate functions globally. The response also contains the sources used.
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The advantages of dispersing corporate functions globally are decisions made locally, and quickly. The decision-making is better. If corporate functions are dispersed globally there is growth and diversification of products. If corporate functions are dispersed globally there is improved communication and efficiency because there are fewer levels of authority. The function does not have to get back to the head office before making most decisions. When corporate functions are dispersed globally there is opportunity to develop executives.
The disadvantages of dispersing corporate functions globally are that if training, experience, and integrity is lacking, dispersing corporate functions can lead to wrong decision, and ...
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