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ACCA Strategic Professional · Strategic Business Leader · Enabling success: organising

Orvane Pharma operates in 15 countries with very different regulatory regimes and customer needs. The board wants country managers to adapt products and marketing locally, while retaining central control over safety standards and capital expenditure above a set limit. Which approach best describes the structure being adopted?

The board is using selective decentralisation: local decisions on products and marketing are delegated to suit differing markets, while safety standards and large capital expenditure stay under central control. This balances local responsiveness with risk control, unlike full centralisation or complete decentralisation.

  1. AFull centralisation with a narrow span of control
  2. BSelective decentralisation with central control of key areasCorrect
  3. CComplete decentralisation with no central policy
  4. DA functional structure with a single decision-maker

Explanation

Delegating operational and marketing decisions locally while retaining control of safety and major capital spending is a mixed or selective approach, matching the diversity of markets. Complete decentralisation would leave no central standards, contradicting the retained controls. Full centralisation contradicts the local adaptation.

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