Kranworth Chair 1. Identify the most important key recurring decisions that must be made effectively for KCC to be successful. In KCC’s functional organization, who had the authority to make these decisions? Who has the authority to make these decisions in KCC’s new divisionalized organization?

Some of the most important key recurring decisions that must be made were contracts with distributors, marketing and R&D. In the beginning all of these decisions were made by top management. Though contracts many times were from sales teams, the majority of the big deals had some involvement of the top management. In the new divisionalized organization, most of this is divided up to the two divisions. Though R&D is still a centralized division, with their team head reporting only to top management, all of their decisions and outputs are determined by the division heads. So most of the decisions used to be determined by the top management but most of these have been given down to the division leaders.

Kevin broke it out to profit centres.

2. Did KCC’s top management go too far in decentralizing the corporation? Did they not go far enough? Or did they get it just right? Why?

I personally believe from Kevin’s point of view they went too far. For the example, Joe talking with a new advertising agency, Kevin didn’t believe this was the right approach as he thought the actual marketing was fine it was just the product placement in the actual stores which caused the issues. So I believe there are many areas Kevin does not agree with the new people in charge and thinks they should be done differently. From that regards I believe they went too far in decentralizing it. Before Kevin would have say and would ultimately make the decision that worked best for him. Now he has to take other people’s ideas and if he doesn’t let them, then they feel like they have