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</p> Signup and view all the answers

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

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

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

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

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

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

    What was one of the new responsibilities given to agencies?

    <p>Managing their own inventory</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</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 %</p> Signup and view all the answers

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

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

    What was not possible for agencies to negotiate before?

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

    What is not known by the agencies?

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

    How long can payment deadlines be extended?

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

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

    <p>5</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</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</p> Signup and view all the answers

    What was the previous role of each agency in APPLIX?

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

    What type of reporting was done previously in APPLIX?

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

    Why was the decentralization of certain decisions necessary?

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

    What remains unchanged in the new organization of APPLIX?

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

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