Question

A statutory corporation faces criticism for its rigid structure. Explain why this happens.

Answer 1

1. A statutory corporation is criticised for its restrictive structure and bureaucratic framework, which delays decision-making and limits flexibility.
2. Multiple levels of approval and adherence to tight government requirements frequently result in delayed responses to market developments and new opportunities.
3. This structure limits creativity and adaptability, making it difficult for the company to respond rapidly to new trends or competition.
4. As a result, the organisation struggles with inefficiency, restricted growth, and a lack of adaptability to changing business environments.