Which of the following are potential drawbacks of a decentralized federation structure, where a parent company establishes different national subsidiaries?
A) Decisions may be made wholly in terms of local relevancies, which may not always serve the interests of the centre.
B) Duplication of effort and cost inefficiencies as each periphery replicates functions locally, on a small and more costly scale.
C) Resistance to innovations from subsidiaries who view themselves as rival centres in the federation.
D) all of these

Question

Quizplus · Accepted Answer

All of these are potential drawbacks of a decentralized federation structure where a parent company establishes different national subsidiaries. Local relevance-based decision making may not always serve the interests of the center (A), duplication of effort and cost inefficiencies will arise as each periphery replicates functions locally (B), and subsidiaries may resist innovations due to competition among themselves, leading to a lack of cohesive innovation strategies for the federation (C).

Which of the Following Are Potential Drawbacks of a Decentralized