Question
In: Operations Management
Linda Bells is the president of a car accessories company in Germany. In order to expand...
Linda Bells is the president of a car accessories company in Germany. In order to expand its business to Asia, she has decided to set up an overseas sales office in Hong Kong. Stephen Crag, the sales and marketing manager, is assigned to be relocated to Hong Kong to oversee the business there. Stephen has requested the president that this overseas sales office be decentralized to provide him with an opportunity to make timely decision in this new market.
a Explain why Stephen requested decentralization of authority in Hong Kong.
b What possible disadvantages could result from the decentralization of the sales and marketing function of the overseas office?
Solutions
Expert Solution
Answer:- Explain why Stephen requested decentralization of authority in Hong Kong.
One of the main distinguishing features of international marketing is that the customers of different regions have different requirements and tastes and preference. Apart from this, the marketing and sales practices which are employed in the home country may not be successful in the host country due to the reasons that the customers may have varied traits and interest in different marketing ploys,
Apart from this, the marketing manager will be more effective in dealing with the local competition if he is given the freedom of asking the decisions and it will also make the company be responsive of strategies of the competitors.
All the above-stated factors provide a reasoning and solid ground that the decentralization of authority in Hong Kong should be allowed.
Answer:- The main disadvantages of decentralization are as below:-
- The local business unit may not implement the strategies or tactics made by the company
- It will result in a lesser control over the local unit by the head branch.
- This can also result in the fragmentation of the organization and then the managers may show reluctance in working as a team.
- There can be the chances of misusing the given power and authority
- The company may lose the control over customer service and productivity
keosha answered 1 year agoRelated Solutions
A company that makes car accessories. The company control its production process by periodically taking a...
A company that makes car accessories. The company control its
production process by periodically taking a sample of 99 units from
the production line. Each product is inspected for defective
features. Control limits are developed using three standard
deviations from the mean as the limit. During the last 12 samples
taken, the proportion of defective items per sample was recorded as
follows:
0.01
0.03
0.0
0.04
0.01
0.01
0.00
0.01
0.02
0.02
0.03
0.03
a. Determine the mean proportion defective,...
You are the director of operations for your company, and your vice president wants to expand...
You are the director of operations for your company, and
your vice president wants to expand production by adding new and
more expensive fabrication machines. You are directed to build a
business case for implementing this program of capacity expansion.
Assume the company's weighted average cost of capital is 13%, the
after-tax cost of debt is 7%, preferred stock is 10.5%, and common
equity is 15%. As you work with your staff on the first cut of the
business case,...
You are the director of operations for your company, and your vice president wants to expand...
You are the director of operations for your company, and
your vice president wants to expand production by adding new and
more expensive fabrication machines. You are directed to build a
business case for implementing this program of capacity expansion.
Assume the company's weighted average cost of capital is 13%, the
after-tax cost of debt is 7%, preferred stock is 10.5%, and common
equity is 15%. As you work with your staff on the first cut of the
business case,...
You are the director of operations for your company, and your vice president wants to expand...
You are the director of operations for your company, and
your vice president wants to expand production by adding new and
more expensive fabrication machines. You are directed to build a
business case for implementing this program of capacity expansion.
Assume the company's weighted average cost of capital is 13%, the
after-tax cost of debt is 7%, preferred stock is 10.5%, and common
equity is 15%. As you work with your staff on the first cut of the
business case,...
You are the director of operations for your company, and your vice president wants to expand...
You are the director of operations for your company, and
your vice president wants to expand production by adding new and
more expensive fabrication machines. You are directed to build a
business case for implementing this program of capacity expansion.
Assume the company's weighted average cost of capital is 13%, the
after-tax cost of debt is 7%, preferred stock is 10.5%, and common
equity is 15%. As you work with your staff on the first cut of the
business case,...
XYZ Electronics is a mid-sized electronics manufacturer located in Germany. The company president is Mark Johnson,...
XYZ Electronics is a mid-sized electronics manufacturer located
in Germany. The company president is Mark Johnson, who inherited
the company. When it was founded, over 70 years ago, the company
originally repaired radios and other household appliances. Over the
years the company expanded into manufacturing, and is now a
reputable manufacturer of various electronic items. Sam Smith, a
recent MBA graduate, has been hired by the company’s finance
department.
One of the major revenue-producing items manufactured by XYZ is
a...
XYZ Electronics is a mid-sized electronics manufacturer located in Germany. The company president is Mark Johnson,...
XYZ Electronics is a mid-sized electronics manufacturer located
in Germany. The company president is Mark Johnson, who inherited
the company. When it was founded, over 70 years ago, the company
originally repaired radios and other household appliances. Over the
years the company expanded into manufacturing, and is now a
reputable manufacturer of various electronic items. Sam Smith, a
recent MBA graduate, has been hired by the company’s finance
department.
One of the major revenue-producing items manufactured by XYZ is
a...
A company is considering purchasing a new second machine in order to expand their business. The...
A company is considering purchasing a new second machine in
order to expand their business. The information for the new machine
is:
Cost= $100,000
Increase in contribution margin= $25,000
Life of the machine= 5 years
Required rate of return = 10%
Calculate the following:
a. Net present value
(NPV) (Use factors to three decimal places, X.XXX, and use
a minus sign or parentheses for a negative net present value. Enter
the net present value of the investment rounded to the...
Q1. OO company decided to expand its production and in order to do so it will...
Q1.
OO company decided to expand its production and in order to do so
it will issue new equity. The days before actual public
announcement, the stock price decreases on an unusual high number
of large sell orders. This is an example of
a. Weak market efficiency.
b. Semi-strong market efficiency.
c. Strong market efficiency.
d. Very strong market efficiency.
e.None of the above, this is normal market behavior.
Q2. Angel investors (“Sharks”) and Venture Capital investors
are examples of...
In order to expand its bottled water business, a local company is considering the acquisition of...
In order to expand its bottled water business, a local company
is considering the acquisition of additional equipment. It plans to
buy the equipment. The total cost of the equipment (as one initial
payment at the beginning of the project) is $200,500. During the
time span of its use, the equipment is expected to produce net cash
inflows of $67,000 each year. The equipment is expected to be used
for 4 years, then re-sold in the used-equipment market for $25,000....
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Co(II) was used as an internal standard to analyze a sample of Ti(IV) with atomic absorption...
- Matlab Programming Write an M-file to read a real-valued vector of any length from the keyboard...
- TASK back to top In the contemporary management environment, mergers and acquisitions are hot topics; particularly...
- A room with 2.7-m-high ceilings has a metal plate on the floor with V = 0V...
- which of the following statements are true? a) the same nuclear changes (creation/destruction of specific nucleons)...
- Overview: Advances in technology have impacted many facets of the auditing process, from assessing risk and...
- Background: This course is all about data visualization. However, we must first have some understanding about...
ADVERTISEMENT