Centralized or Decentralized?
In a centralized company, top management, versus a decentralized company, makes all major planning and operating decisions where managers of separate divisions or units are delegated operating responsibility.
Characterize businesses that you have previously worked for or currently work for as either centralized or decentralized. How did you make this determination?
Part 2
Differential Analysis and Product Pricing
Identify decisions from your personal experiences that fit under each of the categories of differential analysis presented in the text, including lease or sell, discontinue an unprofitable segment, manufacture or purchase (make or buy), replace fixed asset, process further or sell, and accept additional business at a special price.
For example, a decision to cook dinner or order a pizza is essentially a “make or buy” decision. Deciding whether to go to work or go on to graduate school after finishing a baccalaureate degree is a “sell or process further” decision.
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