KidZania is a Mexican Company that was established in 1997 and started operating two years later in Mexico City with La Ciudad de los Niños as its first business brand name. The name means ‘The City of Children’ in Spanish. The company was founded by current CEO, Xavier Lopez Ancona, and is still a privately owned business. The brand name was later changed to KidZania when the company opened up to franchising, which made the name simpler and internationally recognizable. KidZania is one of its kind in the edutainment industry. It welcomes children aged between 4 and 16 years to work as adults in a city full of jobs that are sponsored by real brand names. For example a kid can cook and wrap sandwiches at McDonalds the same way…show more content… Kidzania has her sights set on rapid global expansion, the named governor of Kidzania Cairo; Tarek Zidan was the chosen one as he was already in the education entertainment field. Later on he took responsibility for building the Kidzania Empire in Egypt. Egypt branch has its marketing plan set as they believed that children in Egypt needed a different type of education that is entertaining. Their target audiences are parents and children which means that they target a niche audience since they offer an educational entertainment city for children only and not for a mass audience.
Advantages of using a decentralized system:
Concentrated managerial attention
In our case the CEO Lopez gives close attention to hiring the best managerial executive team to his target. He was very attentive to their work and made sure to attend all openings and meeting concerning the location
Rapid response to problems and opportunities
Managers of kidzania have the ability to act fast under duress in order to put the situation under control before it gets out of hand.
All executive teams needs to invest their time and effort to decrease the burden of work among employees
Disadvantages of using a decentralized system :
Ineffective decision making
Some decisions can have a negative impact on the organization therefore, it might affect the overall performance of the organization.
Executive teams needs to make sure each employee is