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Scope of Decision-Making

Course video 29 of 39

This module will highlight the role of the corporate office in a number of ways. First, its importance in corporate decision-making is analyzed: On the one hand, the corporate office is best placed to take the firm’s overall objectives into account, so corporate choices may be more efficient if taken by the corporate office. On the other hand, lower ranks in the hierarchy often carry more detailed information about the immediate challenges and changes in the different activities of the firm. Second, this module looks at the scope of decisions the corporate office takes. While some corporate offices restrict themselves to providing an internal financial market, others will heavily control the specific actions of the lower-ranked units.

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