Tuesday, September 10, 2013

Centralization vs Decentralization

There can be benefits to both Centralization and Decentralization in technology. Apple was considered one of the most innovative brands in technology under the leadership of Steve Jobs. He was so integral to the growth of Apple as a company that when they were failing as a business he was brought back into the company by the very people that had forced him out years before. It was after his return to the company that they began to make waves in the consumer electronics industry with the "i" devices that have become the corner stone of the market. After his death everyone already had such low expectations where the company would go that stocks immediately fell and the outlook of their advancements looked slim. The company has started to look at going more of a decentralized direction of managing their business.

Decentralization has worked very well though for a company like Nissan and the French car company, Renault. Together the companies were doing moderately well in their respective prime markets, Japan and Europe. However after the companies merged into an almost equal partnership their ability to do business has increased. Each company now reports to one central manager who takes direct from regional managers and board managers. Those groups all work together across many countries to make decisions for the company.

There is no real way to say that one concept is better than the other, just is it better for the business at that time.

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