Page 169 - CL How to Read a Case Study

Paragraph 4

PARAGRAPH 4

Having seen several large companies get into trouble when

division directors made mistakes and the division suffered

large losses, Sweet concluded that he had gone too far with

decentralisation. 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

important matters as:

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

2: new-product introduction

3: marketing and pricing strategies and policies

4: plant expansion

5: changes in personnel policies