Question

Which of the following describes a limitation associated with the decentralized organizational structure for advertising?

A.Brand managers are often overqualified and tend to feel superior to product managers.
B.Brand managers are typically from non-management backgrounds.
C.Brand managers do not devote enough attention to short-term planning and administrative tasks.
D.Brand managers often end up competing for management attention, marketing budgets, and other resources.
E.Brand managers typically rely on intuition and often jeopardize the creative activities of the advertising agency.

Answer 1

A decentralized organizational structure in advertising may lead to competition among brand managers for resources, which can be a limitation when establishing and maintaining a recognizable brand against major competitors.

Step-by-step explanation:

The question focuses on the limitations of a decentralized organizational structure in the context of advertising and brand management. When considering the options presented, the most relevant limitation is that brand managers often end up competing for management attention, marketing budgets, and other resources in a decentralized structure.

Due to product differentiation, creating and maintaining a recognizable brand name can demand significant advertising expenditure, which in monopolistic competition and oligopoly markets is often large enough to deter new entrants.

Additionally, in organizations with a flat structure, there's been a shift towards valuing teamwork and collaboration, which might negate the silo effect of decentralized organizations to some extent. However, such a structure can make it difficult for managers to align on company-wide strategies, which may impact brand consistency and marketing effectiveness.