Strategic Management: Formulation and Implementation

Determining The Degree Of Authority And Independence To Give Each Unit

Companies must decide how much authority and decisionmaking latitude to give managers of each organization unit.

There are several guidelines for delegating authority to various units:

One of the biggest exceptions to decentralizing strategy related decisions arises in diversified companies with related businesses in their portfolios, in such case, capturing strategic fit benefits is sometimes best done by centralizing decisionmaking authority.