In late 1992, Sysco expanded its customer base and product offerings to include medical and surgical supplies.'R uran co than half of Sysco's sales, and hospitals and nursing homes make up more than 10 percent. Schools and coIleges"a()oftg motels also account for more than 10 percent of sales. *//

Sysco's growth has been not only through internal expansion but also through a total of more than forty careNtty chosencqutsito acquired firm must be profitable, and the management must plan to stay. Indeed, part of every purchasing price Is to be earned future profits of the firm as a Sysco operating company. Although Sysco tends to sell any manufacturing parts of acquired compazii "

tends to treat each acquisition as a new partner in the business and maintains a decentralized managerial planning and operatin',

This decentralized system is necessary to ensure that Sysco accounts for local tastes-chicory coffee in Louisiana and baked beans in mola in New Englandas well as fosters innovation. '

Pay-for-performance is one of the few central policies employed by Sysco. Bonuses for all managerial personnel are based on ice di planned levels of profits as a percentage of revenues and return on capital. That ensures that everyone is striving for the same* et objectives for the overall organization.

What is the growth strategy used by Sysco,Explain it (5 Marks)

Discuss the decentralization system of Sysco. (5 Marks)

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