Page 7 - Ice Breaker Case
P. 7

Paragraph 4


                 Having seen several large companies get into trouble when

                 a division director made mistakes and the division suffered
                 large losses, Sweet concluded that he had gone too far with

                 decentralization.    As  a  result,  he  withdrew  some  of  the

                 authority delegations to the division directors and required

                 them to get top corporate management approval on such
                 matters as:



                         (1) any unplanned capital expenditure over $10,000,

                         (2) the introduction of any new products,
                         (3) marketing and pricing strategies and policies,

                         (4) plant expansion, and

                         (5) changes in personnel policies.
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