Page 166 - CL How to Read a Case Study
P. 166
Paragraph 3
PARAGRAPH 3
As a result, Sweet decentralized the company into twelve
independent domestic and foreign divisions, each with
complete profit responsibility. However, after this
reorganization came into effect the balance sheet began to
show signs of deterioration and he began to feel that the
divisions were not adequately controlled. There developed
considerable duplication in purchasing and personnel
functions, each division manager ran his or her operations
without regard to company policies and strategies, and it
became apparent to Sweet that the company was
disintegrating into a number of independent parts.
