7.1.5—Centralisation vs decentralisation

Centralisation keeps important decisions near the centre; decentralisation gives more authority to lower levels or divisions. The choice affects speed, consistency, expertise and local responsiveness.

Central control can protect standards and exploit scale, while local control can use better information and motivate managers. Hybrid arrangements are common.

Head office may set brand and safety rules while local branches adapt opening hours to demand; the boundary between decisions is deliberate.

Decentralisation is not absence of strategy, and centralisation is not always efficient when local information matters.