Decentralizing decision rights marries authority with local knowledge. This would seem to be a good thing, but a problem that may arise is that:
a. local managers may have too strong a corporate identification.
b. local management may conserve central management's time and effort.
c. local knowledge may allow local managers to tailor prices and services to local needs.
d. lack of local incentives may mean that local managers do not work to maximize firm value.