International business Essay Example | Topics and Well Written Essays - 2750 words - 1

International business - Essay Example This report aims at discussing why certain overseas businesses have a decentralized operations systems while the other follows a more centralized form. There have been several debates and discussions on this topic and the reasons why companies choose different forms of organisational structures in different places. To understand this better it is essential to firstly understand the meaning of decentralised and centralised forms of organisational operations. This will lead various factors that allow companies to choose the different style and also how the two differ in the case of different companies. There have been numerous debates and discussions in regards to the definition of ‘Decentralization’, and in a number of events this term has been mixed with ‘devolution’ or ‘delegation’. In the case of multi national companies and their operations, decentralization can be taken to mean the decision making rights or responsibilities, i.e. away from the centre and spread out across the various locations. Decentralization of a business operation simply means that the operation of every location is separate and based on the needs of the particular location. Here the main managers and heads of the company for each location are held responsible for the strategies, plans and operations of the particular location. In simpler terms the process of decentralization involves the decision making process and authority of the firm to a larger number of actors rather than a limited few in the central office. Operations in these kinds of companies are decentralized and the management for each area is different. Hence a decentralized management allows the company to perform better in the various regions and ensure that the company works in accordance with the region, culture, values and ethics. Also if the operations are tailor made for the