Strategic Management Advantages And Disadvantages

Advantages of making strategic managements decisions at the headquarters

Making of strategic management decision at the company’s headquarters have various advantages that include ensuring uniformity in the management of the company across the world. It is easier to have a uniform management practice by making strategic management decision at the headquarters rather than at subsidiaries (Peter Dowling, 2012). Secondly, making of strategic decision at the company’s headquarters ensures that there is loyalty to the company’s headquarters or center of powers. The leadership in subsidiaries is reminded that there is a more powerful organ that precedes their semi-autonomous powers (Peter Dowling, 2012). Thirdly, making of strategic decisions at the company’s headquarter give the company central management team an easy time in evaluating the progress made. This is due to it being alive to the expectations and understanding well the management strategy that is being advanced by its subsidiaries

Disadvantages

The disadvantages of making strategic management decisions at the company headquarters pose several challenges. One, it denies the subsidiaries the chance to make faster strategic management decisions that may be needed in salving their operation due to changes in their environment of operation that is typical to their respective localities. Conditions under which each subsidiary operates are not the same, thus the possibility of there being a variance in the strategic management needs of each subsidiary (Peter Dowling, 2012). Secondly, centralizing of decision making at the company’s headquarters makes the process of implementing the decision s made long and difficulty. Thirdly, centralization of stra...

... middle of paper ...

...n the locals in taking up technical position that the locals may lack skills in. moreover, different states have different laws governing the foreigners working within their border and remittance of cash (Peter Dowling, 2012).

I foresee conflicts of interests when applying and implementing the rules of code in Canada. The conflict may emerge due to Canadian laws governing the employment of foreigners, standards of chemical products, remittance of profits and the general welfare of the employees. The new company’s code of conduct must adhere to the Canadian regulation (Peter Dowling, 2012). The Canadian law protects the rights of the employees and bans and for of discrimination at the place of work. Applying a code of conduct that is foreign to the Canadian culture and common practices may set the company against the Canadian authorities (Peter Dowling, 2012)