Posted: February 10th, 2017

local knowledge may allow local managers to tailor prices and services to local needs

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