Question 1

Section A

GlobalMart, a multinational retail franchise, allows its regional store managers to independently select 40% of their inventory based on local cultural preferences, set their own local marketing budgets, and hire staff without head office approval. Which organizational concept does this scenario best illustrate?

Accepted Answer

Note that lower-level managers (regional store managers) have the authority to make significant business decisions (inventory, budget, hiring). This is the definition of decentralisation.

Question 2

What mistakes do candidates make on this ACCA question?

Accepted Answer

Confusing decentralisation with span of control. While flat structures (wide span) often correlate with decentralisation, the specific act of delegating decision power is decentralisation.

How to approach this question

Full Answer

Common mistakes

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