Topic > Advantages and Disadvantages of Strategic Management

Advantages of Making Strategic Management Decisions at Headquarters Making strategic management decisions at company headquarters has various advantages which include ensuring uniformity in managing the company throughout the world. It is easier to have a uniform management practice by making strategic management decisions at headquarters rather than in subsidiaries (Peter Dowling, 2012). Second, making strategic decisions at company headquarters ensures loyalty to the company's headquarters or power center. Branch leadership is reminded that there is a more powerful body that precedes their semi-autonomous powers (Peter Dowling, 2012). Third, making strategic decisions at company headquarters gives the company's central management team an easy time to evaluate progress. This is due to the fact that it is attentive to expectations and understands well the management strategy carried out by its subsidiaries. Disadvantages The disadvantages of making strategic management decisions at company headquarters pose several challenges. First, it denies subsidiaries the ability to make more rapid strategic management decisions that may be necessary to save their businesses due to changes in the operating environment typical of their localities. The conditions in which each subsidiary operates are not the same, so there is a possibility that there are differences in the strategic management needs of each subsidiary (Peter Dowling, 2012). Secondly, the centralization of decision-making at the company's headquarters makes the process of implementing the decision made long and difficult. Third, the centralization of stra...... middle of paper ...... in locals in hiring technical positions where locals may not have skills. Additionally, different states have different laws regulating foreigners working within their borders and remitting cash (Peter Dowling, 2012). I foresee conflicts of interest when applying and implementing the rules of the Code in Canada. Conflict may arise due to Canadian laws governing the employment of foreigners, chemical product standards, remittance of profits and the general well-being of employees. The code of conduct of the new company will have to adhere to Canadian legislation (Peter Dowling, 2012). Canadian law protects the rights of employees and prohibits discrimination in the workplace. Enforcing a code of conduct that is foreign to common Canadian culture and practices can pit the company against Canadian authorities (Peter Dowling, 2012)