Top-Level Decisions

• A primary reason a company operates with a centralized structure is to keep decisions and influence in the hands of a small number of the organization's most talented leaders. For instance, a single buyer for a retail organization means you have a trained and experienced buyer negotiating all deals and product acquisitions. You are more likely to have the best decisions made when a small number of your best people make them versus having many people involved.
  
  

Fast Execution

• Fast execution of decisions is another common advantage of centralized structure. Having many people across various levels involved in making important decisions is often inefficient and time consuming. If one person in charge of a particular area of the business, or a small leadership team, makes critical decisions, there is less discussion required and fewer points of view to consider. Communication of the decision is anticipated at front-line levels from the centralized decision-maker as well.
  
  

Brand Consistency

• Decisions made at one level and passed down throughout an organization also enable consistency in application across the company or brand. This helps maintain a consistent brand image and provides that customers coming to the organization or store in various locations can generally get the same experience or see the same result of the decision. Similarly, business partners and others who communicate with the organization get consistency in voice and message from the decision-maker in a particular area.
  
  

Bargaining Power

• Centralization offers much more bargaining power than a decentralized operation. When one buyer works with suppliers to negotiate deals across the organization, he can leverage higher volume purchases to get the best prices and most favorable rates and terms on credit accounts. This is a major advantage for large companies compared to small businesses or organizations in which many buyers try to form relationships with suppliers.