Page 155 - CL How to Read a Case Study
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(3) marketing and pricing strategies and policies,
(4) plant expansion, and
(5) changes in personnel policies.
The division directors were understandably unhappy when they saw some of their
independence taken away from them. They openly complained that the company
was on a "yo-yo" course, first decentralizing and then centralizing. Sweet worried
about this problem, calls you in as a consultant to advise him what to do.
1. In your opinion, what did the CEO do wrong when he set up the twelve
independent divisions?
2. Do you agree that what the CEO did to regain control was correct?
3. What would you have done under the
circumstances?
