Question: Answer this Inter dependencies exist between divisions. Moreover, Bourgine believes the key to continual innovation is cooperation between the divisions. Divisional managers are rewarded [solely]

Answer this

Answer this Inter dependencies exist between
Inter dependencies exist between divisions. Moreover, Bourgine believes the key to continual innovation is cooperation between the divisions. Divisional managers are rewarded [solely] on the basis of divisional return-on-investment (ROI), whereby ROI is expected to increase each year. A networking colleague has suggested MB would be better of using the residual income measure to evaluate the performance of the divisions and managers. Bourgine has become increasingly concerned at what appears to be tensions between the divisional managers. These tensions seem to relate to the use of centralised resources; sharing of knowledge and intellectual capital; and collaborating on product development. This is a bit confusing to Bourgine as she recently introduced the use of Slack as an internal communication tool. Moreover, there seems to be an unwillingness to undertake investment opportunities, even though she has recently lowered the hurdle rate to 8%. Bourgine is not sure what to do. Exhibit A: Makenzi's Books CEO: Bourgine Centralised Research and Finance and Sales and Development Operations Development and Customer services Support Divisional Publishing Retail Technologies Units After spending a nice, long weekend by the seaside, Company CEO - Liz Bourgine identified a number of factors/issues in the form of questions she wanted the company to address. These were: 1. Does she have the right structure and supporting control system in place which best supports the strategy of Makenzi's Books? Is there a better structure that could be used; or, other changes to the control system that are necessary? 2. Do I need to change the divisional structure in order to get the divisions and key personnel to work together to develop innovative opportunities for the company? I don't want to do that so, are there other ways? 3. I know we are exposed to a range of different risks. But what are the main ones and best options to manage these? 4. I wonder if need to make any changes to the ROI measure we are using. I thought it was working OK; but now I am not sure. Which of the following are an adequate and realistic solution to the second of Liz's concerns: "....Do I need to change the divisional structure in order to get the divisions and key personnel to work together to develop innovative opportunities for the company? I don't want to do that so, are there other ways?..." Note: multiple answers possible. Promote collaboration through the use of cross-unit project teams and a focus on organisational performance Initiate the use of idea brokers in conjunction with a matrix structure Promote collaboration through a matrix structure and rewards tied to organisational performance Initiate the use of idea brokers in conjunction with adding an organisational-level ROI. Promote collaboration through a matrix structure and initiate a focus on divisional performance evaluation

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