Why do companies need people in charge of the entire company? I get that certain parts of the company (i.e. production, shipping, marketing, etc) need a leader / someone who keeps an overview. But why do they need someone at the top of the company, who’s just there to.. be someone to represent the company? In most cases I’ve heard of, the CEO is in charge of pretty much everything, but barely knows anything about every individual thing the company does. So why not have no CEO, and instead just leaders of individual groups? Why does someone have to be on top of everyone?
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The individual groups have conflicts sometimes that need to be resolved.
For example sales might be bringing in lots of new customers, but operations have noticed that some of their customers are unprofitable. So someone needs to decide whether operations should make efficiency improvements to handle the unprofitable customers for less money, or sales should change their strategy to focus on acquiring better customers.
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