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) Suboptimal decision-making.
D) Duplication of business activities.

Question

Quizplus · Accepted Answer

A vertically centralized organization with a small management team may face suboptimal decision-making due to bottlenecks and limited perspectives, as decisions are concentrated in the hands of a few individuals.

A Rapidly Expanding Retail Organization Continues to Be Tightly Controlled