Tasty Treats, an international fast food chain, is facing tough competition in foreign markets. Any decision such as introducing a new product or service, dropping an existing product line, or changing promotional strategies needs to be approved by the top managers at the company's headquarters, so it takes a lot of time to implement decisions. As a result, the company is unable to effectively respond to changes and problems on a regional scale. What cause can be attributed to the problems faced by Tasty Treats?

A. product departmentalization

B. undercapitalization

C. overcentralization

D. wide span of control

E. employee empowerment

The correct answer is letter "C": overcentralization.

Explanation:

Overcentralization refers to a corporate structure characterized by centralized decision-making. Top managers are the absolute drivers of the firm's route under this approach. Overcentralized entities are bureaucratic, with many corporate departments classified in layers and sublayers that make the transmission of communication slow not allowing the firm fast response in front of market changes.

The correct option is C, over-centralization

Explanation:

Over-centralization is when decisions are vested in the top management, without giving room for managers of divisions to take quick and beneficial decisions capable of turning the performance of such divisions around.

The aftermath of such approach to decision making, is a business where opportunities cannot be tapped as operational managers are not empowered to act and take decisions as swift as possible without a recourse to top management team.

Under-capitalization relates to business being under-funded

Wide of span of control means a manager has many people under his supervision