Centralisation
Centralisation is an organisational structure in which significant decisions — pricing, capital investment, new product launches — are reserved for senior management at headquarters.
Also known ascentralization
See it move
A formula card illustrates centralisation as the concentration of decision authority at headquarters. The visual notes that pricing, capital investment, and new product launches are reserved for senior management, yielding consistent brand standards, economies of scale, and pooled specialist expertise as advantages. The costs are slower reaction to local conditions and reduced front-line motivation; in practice most organisations centralise core functions such as treasury and legal whilst decentralising execution.
Check yourself
A European retail chain with 200 stores across eight countries reserves all pricing, promotional, and capital-expenditure decisions for its headquarters team. Store managers may adapt shift rosters and manage daily stock replenishment but set none of the above. Which label best describes this organisational arrangement?