Centralization—Weighing the Benefits Against the Risks

CEOs of companies that had undertaken centralization or regionalization initiatives (i.e., activities and decision making are concentrated to a single location globally or within a region) were interviewed to learn from their experiences.

Rickard Alfredéen | January 08, 2016

CEOs of companies that had undertaken centralization or regionalization initiatives (i.e., activities and decision making are concentrated to a single location globally or within a region) were interviewed to learn from their experiences.

Benefits—not only reduced costs

The most frequent argument in support for centralization is scale economics. Reducing costs is the primary motivator for organizations undertaking centralization. However, there are many other advantages, as well as disadvantages.

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