Question: 1. Burton Electronics produces radios, computers, and navigation systems. Although all high level decisions are made at company headquarters by top management, rapid expansion |

1. Burton Electronics produces radios, computers,

1. Burton Electronics produces radios, computers, and navigation systems. Although all high level decisions are made at company headquarters by top management, rapid expansion | and increasingly specialized products have caused the company to consider decentralizing into three divisions (i.e., Radios Division, Computers Division, and Navs Division). Each division manager would be responsible for costs, revenues, and investments in assets. a) How should the company classify the three divisions, as cost centers, profit centers, or investment centers? Explain. (10.2) b) What are the potential advantages of decentralizing? (10.1) c) What are the potential disadvantages of decentralizing? (10.1)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!