Decentralization in Business

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Questions and Answers

What is the focus of the monthly reporting system for agencies?

  • Only the sales figures
  • The state of budgetary tracking of expenses paid by the agency
  • The total amount of promotional expenses
  • The contribution made by the agencies (correct)

What happens to the client recovery process?

  • It is abolished
  • It is outsourced to a third party
  • It is decentralized to the agencies
  • It remains centralized at the headquarters (correct)

Why is the contribution calculated in a simple way?

  • To increase the role of the financial director
  • To make it more accurate
  • To reduce paperwork for agency managers (correct)
  • To make it easier for the agency managers

What is the role of the central financial direction?

<p>To directly negotiate financial costs (D)</p> Signup and view all the answers

What is excluded from the calculation of the agency's contribution?

<p>Frais financiers (D)</p> Signup and view all the answers

What was the central file used for in the company?

<p>To manage client information for billing purposes (D)</p> Signup and view all the answers

What was the result of the centralization of the client file?

<p>Many frictions between the head office and agencies (D)</p> Signup and view all the answers

What could agencies modify after the centralization of the client file?

<p>The conditions of payment (B)</p> Signup and view all the answers

What was a consequence of the lack of available products in agencies?

<p>Loss of sales (B)</p> Signup and view all the answers

What was one of the new responsibilities given to agencies?

<p>Managing their own inventory (C)</p> Signup and view all the answers

What was required for any changes to be made to the agency's operations?

<p>The approval of the head office (C)</p> Signup and view all the answers

What percentage of the year's sales above the minimum threshold does the agency manager receive as a yearly bonus?

<p>5 % (D)</p> Signup and view all the answers

What is the range of discounts allowed for local sales decisions?

<p>5-22 % (B)</p> Signup and view all the answers

What was not possible for agencies to negotiate before?

<p>Prices of equipment (B)</p> Signup and view all the answers

What is not known by the agencies?

<p>Production costs (D)</p> Signup and view all the answers

How long can payment deadlines be extended?

<p>Up to 120 days (D)</p> Signup and view all the answers

How many customer segments were used to determine payment deadlines in the past?

<p>5 (D)</p> Signup and view all the answers

What is the main goal of decentralizing certain decisions in APPLIX?

<p>To give more flexibility to the agency managers (D)</p> Signup and view all the answers

What type of market does APPLIX want to focus on?

<p>Market of small and medium-sized enterprises (C)</p> Signup and view all the answers

What was the previous role of each agency in APPLIX?

<p>Centre of revenue (D)</p> Signup and view all the answers

What type of reporting was done previously in APPLIX?

<p>Monthly reporting (D)</p> Signup and view all the answers

Why was the decentralization of certain decisions necessary?

<p>To give more autonomy to agency managers (A)</p> Signup and view all the answers

What remains unchanged in the new organization of APPLIX?

<p>The mission of distributing APPLIX products (A)</p> Signup and view all the answers

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