Question

What is the role of headquarters and the CEO in a factory-type firm? What is their role in a market-based firm?

Answer 1

In a factory type firm, the Headquarters typically get to employ high skilled, highly qualified and also well compensated workers which can get to boost the production levels of the entire factory. Headquarters also get to be a constant place for the engaement ofthe consumers or the third party sellers where an optimisation of deals can be done. In a market based firm, the headquarters do play a major role in managing all the sub units where a proper check of all the authorities can be done here which can be beneficialin altering the overall process in a profitable way. In a factory type firm, the CEO'sfunction is indeed to design various short term as well as long term goals of the company and to keep a constant eye whether the factory is moving in the desired direction in terms of productivity or not. In a market based firm, the CEO's role is to manage all his sub ordinates and analyse his next lower level workers accordingly and drive their motive in achieving the goals as set by the company on the whole.