To begin this section, please read chapter 9 of your textbook. Then read the following article. After reading this article, please complete a summary and evaluation o

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1fves L. Doz Christopher A. Bartlett

C, K. Prahalad

Global Competitive Pressures and Host Country Demands

Managing Tensions in MNCs

After several years of proposals, persuasion, and subtle pressure from its customers, its em­ ployet·s, a11d 'aricn,s !oral and national govern­ ment bodies, the United States-based hospital supplies rnmpany, Baxter Traveno, recently rnmmissioncd a new French plant to manufor­ turc its line of blood rnllcrtion and 1ransfusion products. •t'hc con1pany already produced similar products in four other plants in Europe, se"cral of which had the potential capacity to supply the French market The company was conscious of the fart that, from a purely eco- 11omic poi111 of view, a single European supply source would probably have allowed the great­ est ma11ufacturing cfficie1H:y.

In the fall of 1~179, the Nigerian government 11otified Fre11cl1 a11tomohilc manufacturer Peu­ J.'<'Ol that its n.'<-cntly expanded $100 million assembly plant would have to import all needed components and supplies through the under­ utilized port facilities in l.agos. Under this ship­ ping plan, the parts and components had to be trucked anms five hundred miles ofbacl road to the plant. Not only was such an operation more time-consuming cmd less reliable, it was 11111rc expensi·e than the previously employed daily rargo flights from Franre direct to the

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plant. Ne'crtheless, the company complied with the request. The two situations desnibed above arc illustra­ tive of the scores of management derisions faced daily by multinational corporations, where the dri'c for international competitive advantage through global rationalization of ac­ tivities is tempered by the needs and wishes of host nations and the diverse demands or their 1narkcts. As global competition imensifies and the variety of national demands increases, more decisions are affected by those opposing demands for natimrnl responsiveness and for global rationalization. Management is continu­ ally faced with the problem of managing the tensions that result. Analysis of these tensions has been discussed elsewherc. 1 The most dif­ firult challenge management faces is adminis­ trative: the structuring of the company's inter­ nal decision-making process to allow the organ­ ization to sense, interpret, and respond to ten­ sions, and the resolution of the often contra­ dirtory demands for global competitiveness and national responsiveness. After detaibl study of the administrative pro­ cesses of a srnre of large multinational com­ panies (l.·fNCs), we have identified several ways

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lor lop manag,·mclll to 1lcal with the variety and ;1111higuitv of national <kmauds while maintaining a glohal husi11css stiategy am! rnr­ porate din:rtion. ·1 ·hc al'lirlc outlines why these dual (kmamls rt·sult in administrative prob­ lems for most ~INC:s, arid present four ma11a­ l.(l'l'ial sol11tio11s to 1ht· prnlilt·m.

Conflicting DemlJnds

: rn111p:111y wishing to ht• sunnsful in tlw i11- t·n·asi11gly n1111pt·titi'l' gl<1hal 11iarkct 11eeds 111

takt· full ad'antagc of it~ glnha! n.'somTcs and multinational po,;ition. By rn11n·n1rating its worlcwidt· 111;11mfanming n·sm1rrcs, for cx­ ampll', a11 ~1:-,,/C may ohtain important global rn.'>I sa·i11gs. By prntt·rting- its prnclwt and pro­

n·ss tt'chnoloMit's, it ca11 rc1ai11 its rnmpctiti'e ach'antagt'S i11 rn~t or prodm t diararteristirs. ldcall•:, a dt·;ir g-lobal st1 ◄ 1lt'){}' e11.sun·.s maxi­ mum kn·ragt' ol a rnr lj>;111~··s skills and rapa· l,ilitic~. · 1 ht· lirm nt"eds an nrgani,ational strur­ tun· that pnrnit~ the dct'lopmcnt of a rlt•ar, ,011sis1,·n1 g-!!>hal din·ttio11 an(l primitics am farilitatl'S the rnonli11atim1 ;rnd integration of till' n1111pa11y rcso111Tes alld t'apahilitics worldwide.

I 'ht· i(leal of at ll'ar, t 011sistt·111, well-intcgTated gloh;il stratl'gy i~ limited h~· powerfol forct"s

that push ~!:'Cs in the dircrtion of a mon• a111hig11011s, less ll'cll-intcgra!cd strategy that rl'sponds to national ditlt-w1H<'S. Siun· nation­ al l't'~ponsi''t'IH'S ohl'n I an ht· ad1icH·d only at the t·xpt'lSl' ol global rnnsi~tt'llt ~· and darity, lt'll'ii!>ll arc I rmted. ·1 he need ti)r a gloli,1ll~· nl11-

~ist1·111 stratq,:-y a11d full~· i1llt·g1atcd operation dqw1Hb 011 l'a!'h irn11st1 y's l harancrislil~. 'J'hl' idt·al, rH·n·s~<HT in thl' :rntomohill' induslr' a11d dl'sirahk i11 till' drng industry, may be rn1111tt•r­ pt ml11ctiw in tht' loud pron·s,i11g imustl)", 2

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i11rrea~ingl~· intt'IW'lll' directly in the rnm­ pany ongoing drrision procc~ses. Employt'es are demanding positions on ~uh~icliary rnm­ pany hoards, and ho,1 go,·c1 nmcnts arc req11ir­ i11!-{ ~tth~ta11tial 11wrwrsl1ip and rnanag-en1ent p:11 titipation by local 11atio11als.

·1 he purposes of 11ational interest g-roups ap­ pL'ar to he trending towards greater variety. 'l lw go·enmwnt of :Ial.1ysia is att<·mpting to redre.'is the social pnililems r:1used by c:hinese and Indian dominalH't' of its ernnorny hy ask­ ing MNCs to ofler at least ,I() percent of their equity to ethnit ~falays. lkmands may reflect the muhiplirity of' g-ownunent omstituendcs in the host rnutllrv, am! often result from th1: interplay ht·t1,·ct•n' national it1teres1s (govern­ ment ,tgcnri<'s, lahor unions, industry asso­ ciations).

An ~INC tr~·ing to adapt to host rnuntry de­ iuand~ is frcqul'ntly confronted with a moving targe1. ·1·1ierc is a grnwinl-{ di't'r~ity or so111u·s, mearn, and ohjt·t ti, t·~ of national demaml~. ~ational dl'mands rarely appL'ar in a dearly art it ulatl'd, !ir1,1I foi 111. lt11her, thl'ir form and d1,ira( ll'ristics tend to t''Olre orer time, aml ohen hernrne lull~· re,ealed onl~· through nego­ tiations \'ith the ~f~(:. ·1·heir ambiguity means that 111a11y important national demands GIil he guag-l'd 011ly 1hrough daily i11terartio11 with the app1opriate gme11mie1ll oflirials, union ll'ade1s, aud indu~t, y reprc~e111a1i,·es. 'fhe alter­ nati, e, the anal.11ical approach typically under­ takt'n hy a .,taff g1011p at rnrporate headtpiar­ teVi. i~ 11orrnallv !(,~~helpful.Top management, limed tn rclv 011 the recommendations of na­ tional suhsidi.11 y managers, i~ fared repeatedly with plans for eronrnnically questionable at.:­ tio11s, the app1ornl of which is supposedly im­ porta11t in retaining good relationships with key rninisu y oflicials. T~·pirally, there is liule top 111a11agem('11t < a11 do to evaluate the arrn­ racy of surh proposals. ;11 inddent that illustrates tht' expcr;em·e of th(' rnmpanies west11clied inrnl'ecl a suhsidiarr manager in a Srandinavian rnuntrr who dt·­ rided to manufacture rnmponents for a rertain rlas~ of elet'troni(' prorlun~ lol';1lJ~, rather than import them from he,1dtjllilllers. This meant hig-h<'rrnsts and lower profits for hoth the suh­ ~idia1 y and th<' headquarters. I !is justilication

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was that government officials had strongl" hinted that, should the rompany manufacture components-acquiri11g what, in the govern­ ment ofticial's dew, w;is a "sell~containcd capa­ bility"-large pwernment contracts would be forthcoming.

The need to respond to host country demands often conflicts with a dear, consistent strategy. Host country demands put global coordination and in(cgrati011 of the company's resources and rapahi!ities in jeopardy. The ongoing, direct interaction with host country forces that is needed to assess their demands rnmpromisl's a coordinated, analytic approach lo strategy eren more.

Managerial Implications The conflict between host (ountry demands ancl rompctiti·e fort:es tun1s stratrgi( decision making in the '.[NC into an adrncacy process between two rnmpeting perspe(tires. The com­ pany finds itsl'lf trying to maintain a dear, cohesire gfoh<1l strategy while keeping poliries flexible enough to satisf}' diverse, ofkn ambig­ llllltS national demands. This imokes negotia­ tions with host gorernments and among mana­ gers within the rnrnpany.

Some managers, attuned to local needs and sensiti,·e to the power of host gorernments and national interest group3, fornr, on almost any issue, more subsidiary aut,momy and greater frcc<lorn in n·spomli11g to 11ational clemamls. Other m,magcrs, more concerned with world­ wide competitire strategi<'s, stri,·e to increase rnordination and imegration across g:eo­ graphir boundaries. In trying to gain power and in defending their own areas of responsi­ bility, these maiiag:ers unearth different facts, analyze tl1cm differe11tly, an<! propose differ­ ent strategic decisions. By confronting rnnflict­ ing ricws construdively the organiwtion cm learn. 3

A most difficult task for top ma1rngcmcnt is <K­ rnmodating these varying analyses while ensur­ ing that the resulting derisions add up to a rnnsistent strategic approach. Because of the inherent rnnflict between national and glob,il 'iews, managemenl cannot limit commitments to th,isc projects agreed upon br both sub­ sidiary managers and product di'ision head-

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quartcr exernti'CS. Such a process mu Id lt•ad tn p,11,1lysi~, ,i11cc only a ft·w, insignifkant pn!jerts may he mutually sati~factory.

To pH't'IW' hoth national a11d glohal views, innca~i11g: agreement should not he soug:ht. Top 111a11aMemcnt wants both pc1spt'<:tiws to lie ,111)11g:, and mu,t de'elop a way !<1 ~clecti'ely farn1 1hc 'icw~ of one or the other .,icle for any pa1 tirular dee i~ion. Soll(' projen~ ne('d to he appro·t·d e1·cn thoug:h they do not draw rnn­ M'l~u, l1(llt1 tll(' rnriom subunits i11 theorg,111i- 1a1ion. Top manag:cment thus seeks to nt'<lll' asyrumt'll y i11 dee ision making.

I 11 ,um111a1), when both a ronsisll'nt gloh;1I ,11all'g1 i, tl{'cdecl aml hmt rnunll)' d1•111ancl~ a1t.· ,!Ion~ at1d lar-rcarhin){, the ~llateg:ie dn i,i01H11aking: piorcss within the ~l~C tlt'ech to pronde lor ~e'eral d1,ir,ictni~tir~: I ha1 t citifl;_( 1i11g: 1 iews be imbed<le1! in !ll i-:ani,a­ tional ,uhu11i1,, that those 'iews he clfcni'elv 1 qin.'.,l'lllcd at thl' e orporalt' k•1el hr mana){el:s lrom !he ~11h1111i1, ;ind that top ma11a){t'111t·nt t:111 ,cl<'tt ci11t· Ill the otl1er r011l1itti11i-: 1·ie11 atrnrding to the spccilit~ of the dt'ri~ion at hand. :-.tuhi-climemionalitv and tlexihilitv arc the k<·~· H·quin·111en1s nf 1,e desired st1.;tc){i1 de< i~1on pi nn'"

-, lit· llt'cd to maintain h,1lam1.· <l'ld llexihility hc1wt-c11 lrn al and global reptt''it·rnatin·.~ in 1(',H hmg: ,1,atcg:it dcri~iom sug:g:ests that tradi­ tic>1i;1l, t1riieli111en~ic111,1l r,n1dm1- or arca-ha,(·11 orga11i,atio11, ;ire likelr to fot·e rnnside1al,lt' ddfit 11hy.~ , wo1 ldwidc prod1tttdi'i,im1 ~11 ll( –

11111· i, likely to le,ul 1uan:1ge1 s to 1011rent1 ate on mai11tai11i11i.: !he tedmolo){ital superiority ol their p1odwt while hcittg: relati'cly imt'nsililt· to 11ational demamh for product fkxihility. \'ht·n \'e~tini-:hou~c g:ave worldwide rcspomi­ bility lo it, prod11tt di'i~ion mana){el~, those whme prodlH t~ bad a rnmpctitive edge in 1hc wc,1 Id 111a1 k1·1 (jUit kly affepted the rhallt·11w• of dneloping a11 international orientation. \'hilt' tedrnolog:ical ~11pe1i01ity may harl' ){hen it a 1 ompt'titin· edge i11 foreign markl'ts, the tom­ pa11y t olltinually I an into dilfirnltie lit_•cmst• ol ih unrt·,pomivem·~~ to !oral, national clc­ mamh. In nm lear power 1.·ng:i11ecri11g, fot ex­ ample, ilw a111hitio11s pla11s set for growlh in E11ro1>e· in tlw late l~JHO., were thwa1ted hr go'­ (•rn1111·111 to11te1ns that its worldwide p1rnlll(t

orientation would not allow Westinghouse enough tlcxihili1y its dealings with hmt g:o'crn­ ments. ~

A g-ec1graphirally based slnKturc whirh ){i'CS

national ~ul1sidiary ma11agers suhstantial autonomy results in different, Inn equally tax­ ing prnhkrn.~. 11lthou1-:h llexibility to local de­ mands is normally a< hicved, opcr,uions may liecmnc frnrtio1Mted and poorly LC)()rdinatcd, with i1<'adqua1 tt-rs management unable lo mak(' the terhrnral judgments nc(·dcd to main­ lain a11 eniricnt i.:lohal rompctiti"c position. A senior rnrporalt' ma11ag:t·r of one rnmpany studied arknowlcdi-:cd that local suh,idiary au101111my a1Hl llexil1ility had s11cngtlw11c1l thc nmipany, ln1t < cu1111lain(·el that, a~ 1·xi~ti11i-: pro­ durts and .• 1arkeh had matur<'d, the rnmpany had little in the h'< lmoloi.:y pipcli11c. "We need a handle on somt'thini-:, hut lat-k a clear ap- 11n)a(·l1. ~fa11~· husi11t•sscs rc1111irt• num• n•ntral effort: tedmoloµ,y has to ht· acquired or de­ "('l(lll('li r<'ntrally, a11d tra(lc-ofls l1ctwee11 risky i11n·st1m·n1s 11t·<·d 1,, ht· 111aele n·ntrally."

1·11t' t1;11liti!i11al, u11itli1nt·n~icmal prmlm.t or ).:('1>gr,11>hie f>ri.:a11ilatio11al strnnun•.~ we ~tmlicd were unable to rope with the dual cn­ viro11mt·t1tal 1lem,111el~. S<llllt' rn11ipanies trie<I 11, s1111pk-mt•111 tlll'ir ~1111ttt1t·~ witl1111lcs ,u1d 1m1ct'cl11n•s to r<'g"t1lat<• tht• rl'latiomhips hl'­ IWl'l'II r1a1i<>Jl.ll ~11h~idiaril's a11d Jll"rnillfl divi­ ~ions, hut tomplex and highly ,ariahle environ­ llH'llt,11 demands t H'ilt<'d it temion betwcc11 11a­ tici11,1I a1HI ){l1>llill )t'I jlt't ti1·t·~ that rnuld no he rt'solwd till ough a I ii-:id, hunHHTatir franw• ,,ork. Eithn the prnr<'dme~ wcrt' not adhered to ;111d pown relationships d,·,eloped around them, or they led to .,trale){it iiillexibility­ rnnllirts heing: rt'ml'l'd "hy the hook" rather than on tht' llll'l i1, of the pmitiom of 'ario11s ma11ag:e1 s 011 the issue~ at hand.

rlw rnmpanies ll't' s111died that had den·lopt'cl lll'xihlt· det is ion pi rn·ew·s, adjmtt'd lo hoth liHal 11a1i1111al ck111a11ds aml global rn111pt•titi,·c pn·ssun·s, had not wlied on traditional organi- 1ational .. 11 ue tut<·, or rii-:id rules and prnre­ dun·s. l 'nlik<' tbmt' in simplt' geoi-:raphic m prmlun organi,atiom, lop manai.:ers in these firms 1erng11ilt'd th(' Ht't'd for their org:aniza­ tion tn rdlcrt tht' dual envi1011111ental ck­ mamls. llnlike rnmpanies that simply ~upplc-

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mcnted their struclures with rules aml proce­ clmes, the.,e rnmpanies rerngniu:d thal the complex and highlr 'ariable decis:on pror~ss was intrinsirally nmllktual and could not be leg:islated through a ln1reaucratic framework, 'l'hesc nm11ianies sl1ared two charatJeristics: they had informal structures, and their top ma11agement cxercised great care in maintain­ ing the <1uality of the <ledsion process he tween m,1nag~rs with tct I itorial responsibilities and 1nanagers with pn,1luct re.~po11sihilities. 'l'hey needed more asy1:1111ctry in the decision pro­ cess 1ba11 rnuld he prmided by formal struc­ tures aml ad111i11istrati'e prot·edures, which tend to dcline permanent, shared responsibil­ ity. These rnmpanit·s n.-cop;ni,.cd that to solve rnnflins they needed to learn to ma11age ten­ sions, not just to formulate procedurt's. In these rompanies, top management's role in maintaining the dedsicm process was twofold. First, they tried lo prevent ex<·nuin.'.~ se11siti'e to national demands or international rnmpeti­ tion from dorninati11g the process. The viability of both perspecti'es had to be maintained. (Vhe11 asked how he dcricled with which mana­ gers to side, the d1ief cxernti'e orfirer from a major rnmpany who practircd the balancing act sun:essfullr answered, "With the weaker.") Second, hecal1se of the nmstctll d,111p;er of horse trading am! improper rnnllict resolu­ tion, top m,maµ;t·ment had to monitor the qual­ ity of the derision making processes. Harold ( ;cneeu's famed large meetings at ITT pro­ 'i<kd this capability: Cenecn put managers of widely different 11rienlatim1s i11 the sa111c roOlll and asked them prnhing, well-prepared qucs­ tio11s to ensure all rclevants !'arts were carefully ,·onsiclcrecl. 6

Not all the senior exernti'es of the companies we studied went to the same length as Ccneen to monitor processes through whid1 stralq"ir decisio11s were made, yet ;ill reroinizcd the sub­ tle, politicd nature of thl' process of halanring 11atirnial dema11ds a11d internatirn1al competi­ tive pressures.

Managing Flexible Asymmetry

\'ithin 1l1e rn111pa11it'S studic<I, a wide 'ariety ol solutio11s had been de'eloped lo deal llexiblr with the nrnflirls helween national demands

Sl'RIN(; I !!IHI / VOi.. XXIII / NO. :1

and international cnmpctitive pressures. All were trying to provide the rnpaoility to explore in detail and from c:ontlidng perspectives the facts pertinent to a decision, and to reach 1hc decision on the merits of facts rather than on some dominance of worldwide product execu­ tives or of subsidiary managers. Nol only did top management of thest· rnmpanies hare to develop lhe various nrgani1ational groups to represent the different perspectives, they had to devise structural arrangements giving top manageml'nt the ability to rnnlrol the groups' an:ess to and inlluenre in the decision-making: processes. BcGtUse the formal organizational structure tended to he too inflexible to provide a responsive decision process, all the companies relied heavily on informal structure.s. We classified four mode~ of administrati'e solutions to managing tt•nsions. Some com­ panies' decision-making proresses incorpor­ ated characteristics of several modes; in some, all four rntep;ories O'erlapped. The four ap­ proaches arc prcs~ntcd in order of complex­ ity, The first two aim at building into the or­ ganization the rnpability for top management to rapture the tensions in the critical emiron­ ments and manage them. The third is a decision-making process that imolres the de­ velopment of coalitions and their skillful man­ agement from one derision to the next. In this approach, top management creates and man­ ages temporary bodies surh as task forces, com­ mittees, and sperial teams, using them to intlu­ enre the outcome of the issues to which they are assig-11cd. In the fourth .~olution, management employs a 'ariety of de'kes, formal and infor­ mal, to create a stable organizational derision conlext in which asymmetriral responsibilities for renain dasses f)f derisions become institu­ tionalized.

S1tbsta11ti1•1' /)l'Cisio11 ila11age111l'lll. In this, the simplest of the four management modes desnibed, top management simply ensured that the managemeut groups representing eac:h of the critical defision perspecti'eS was strong enough to de'dop and ad'orate its par­ ticular viewpoint. In one company, whose operations were geographically organized, strong corporate produrt and functional groups pro'ided top management with well-

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supponcd lase." for global strategics. Thl'se globally oric111ed managers tc11dcd to highlight the l'OSI ofheing nationally rcspousire.

Obviously die national am! the global perspl'c­ tiw·s l1<·q11er1tly 1'<'r<' in n1111liu ahout ma_jm derisiom, and SlKh del·isions were m1>n·d up­ qrd for arbitration. A subsidiary m;mager in om· n1mpany· rnmmented: In tlw10111p.1111 th1·1(· i,,1 wmlcm1· !(•tll'lq:att• "upward" j,iq 111 be ,u11· 110! to ht' (,1t1gh1 lllll on ;1 limb. Fo1 ma111

i\ut·,. d,·1 i,i,,11, 11.nt• 1<1 lw ( l,•an•d hi' 1h1• l1lwl, ol 1lu p1odmti1m ;rnd nwk1·ti11g 1kp.1tt1m·111,. If 111· di,agHT w1d1 du·m IH' go 11! 1!w p1t·~id1·11L ·1 he1t· a11· f11·qm·111 1i,ir- l,1· nw1o1lwr, ol a t('<HII ol ,,um.,lll'r, who iq,out di11'11h 11J 111•.· p1,·wk111. ·1 ht•11· ton1rnllt•1~ kt·rp hun 101·

,1.111111' i11lo111wd 011 cl1•11·lopmt•11t in t'<H h ~uh,icli.111

lkspit<' tht' obrious a<h·a11tagt' of simplititr. ~ut h .t lll()(I(· mar dt'arlr rt'~ult in at lt·as! th rel' maior p1ohlt·111s.

Till' lir~t dcrircs from top 111,mag-t'1t1t·nt's 1eliaw1· rn1 two opposing- ad'oratt· groups fo1 the info1 rnatio11 011 whid1 it mmt m;1kt· its fi11.1l de( ii >ll. !11 llf h a ~ituation, the infonnation fl.'d 11, lop 111a11aµ;c1m·nt may lw rarcfullr sl'll't ted It> l:irnr a p,111irnlar point of 'i('W. ·1·,,p m;mal-(l'IIH'llt dee i-;ions 1uarhc made 011 i11- 1·0111pit·tt·, tonllitting, or inanurate data, and ('hoirl.'~ may he amo111-: a limi1cd, somt'timc.~ t'Xltt·1m·, st•1 of alternati'('S. The best cll'frrnl' a1-:ains1 thi i a clctaill'd, 1·orki11g- knowledg-t· ot the C!Ht1pa11,·'s operatiom ;me irnl11s11y· rnndi­ tions so that hia~t·s i11 information r;m be de­ Ice tC"d and ;iltcrnati't's t·xpandt'd. 'et 110 top 111anagt·1m·111 g-roup cu1 he so well-infornwd 1ha1 i1 ( ,111 cktnt biases in all d,11,1. partinila1 ly that relatin!-{ lo host rnurllrit·s

Tbt' Sl't ond problem is top 111,111agt·111t·nt on·r­ !oad. Top m;maµ;cnH·nt quickly bernrm·s O't'J"­

pm,·ncd with dnisiom, s11µ;1-:cstio11s, ,rnd a11al~·st·s th,111·;111 only he rt'~ol'l'd at their lcn·L I hi slow~ down the dct ision prmcss and

da111pt·11s the gennation of proposals lrn111 within the mgani1atim1 clue to thl' time and toffo1 ts m·rcs~,11 r to oh1,1in top m,u1agc111e11t's apprn'al, C:e111rali1ation may fmthl'r ht· de­ fcatl'd hy· frustrated managers who rnakl' honlcrlim· dl'C"isiom on their 01m, kari11g- that s11hrnis~io11 to top manag-('111e1n would n·~ult i11 no derisions ,11 ,di.

·1·1ie third ma_jorprohlem e1Kou11tered h~·somt· rnmpanit·.~ is in implementation. After top

111,magl'ml'nt arhinatt'S on issues of rnnflkt that ha't' been d1·ra1t·d for resolution, s11rress­ f11l implcm<'ntatim1 oftt·11 1k1)t'11ds 1111 tlH' 11n­

rn111promisi111-: 1ommi1111e11t of managers who han· just li11ishcd lig-hti11g for a different sol­ ution. F'ell in a 1·1•11-di~ciplined management team sudi a sit11ati,,11 ran lead to problems.

'J'lu· s11l1s1;111ti-l' 1ll'cisi(ltl rna11a!{C11Jc11t mmlt• ofll·rs one major ad'alltil!-{t': it is simple. It re­ quires little ol' the ~.uhdt· halanl'ing of groups tbal olhl'r solutions c;1ll for. Top managemcm retains di1t·ct n·111ral rnntrol orer the key deci­ sio11s. This dl·t isio11

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