The Fossil Group is an international clothing, fashion accessories, watch, and bag company. The company is represented in many segments due to numerous mergers and acquisitions and has entered new markets. This has allowed Fossil to diversify its range of products significantly, but it also requires a more practical approach to managing all branches. This requires finding out what strategy the management adheres to, centralized or decentralized. Depending on this, managers face various requirements and challenges, the solution of which leads to positive or negative results.
The company’s management approach is based on the division of the market into three main parts by geography. These segments are America, Europe, and Asia (Fossil Group, 2022). The company’s reports contain much information indicating that Fossil’s management approach is decentralized. This confirms the division of sectors on a geographical basis. At the same time, each sector has its leadership that makes decisions based on the reports of local segments (Fossil Group, 2022). This is another fact that may indicate a decentralized management system, according to the Textbook. (n. d.), decentralization is the distribution of executive decision-making power among different sectors and teams. This correlates with the approach taken by Fossil.
In conclusion, the Fossil Group is decentralized because it delegates decision-making to managers from different sectors. This can be seen in the company’s reports, which refer to the division of management into several segments. In addition, having studied the theoretical materials presented in the Textbook, one can find confirmation of this statement since the definitions of decentralization fall under the Fossil Group management behavior model. Decentralization can significantly expand the scope of management and allows managers to develop faster by making important decisions.
References
Fossil Group. (2022). Form 10-K. Web.
Text book. (n. d.). Decentralization.