What are the advantages and disadvantages of dispersing corporate functions globally and is there a need for a corporation to be in a specific location (perhaps to utilize a virtura business climate)? Use actual concepts and facts to justify response.© BrainMass Inc. brainmass.com October 25, 2018, 8:29 am ad1c9bdddf
The advantages of dispersing corporate functions globally are decisions made locally, and quickly. The decision-making is better. If corporate functions are dispersed globally there is growth and diversification of products. If corporate functions are dispersed globally there is improved communication and efficiency because there are fewer levels of authority. The function does not have to get back to the head office before making most decisions. When corporate functions are dispersed globally there is opportunity to develop executives.
The disadvantages of dispersing corporate functions globally are that if training, experience, and integrity is lacking, dispersing corporate functions can lead to wrong decision, and ...
This posting gives you a step-by-step explanation of why multinationals should locate their corporate functions globally. The response also contains the sources used.
Multiple Headquarters: A Sixth Stage of International Development
Read Multiple Headquarters: A Sixth Stage of International Development on page 294 in our textbook, and also read the article Borders are So 20 th Century from Business Week Magazine: http://www.businessweek.com/magazine/content/03_38/b3850063_mz063.htm
What are the advantages and disadvantages of dispersing corporate functions globally? Is there a need for a corporate headquarters in one specific location in our virtual business climate? Please justify your response by including concepts and examples from our readings and from outside sources.