Using the concept of Centralized and Decentralized Operation:
1. Comment on businesses you have worked for and characterized them as either centralized or decentralized. Be specific with details.
2. Explain the concept of Decentralized operation.
a) Discuss your thought on whether or not there can be a link between decentralized operations and increased profitability. Explain how.
3. What are the advantages of operating a centralized operation? Discuss 3 advantages, explain in detail and provide specific examples.
You are analyzing two companies - relate your answers to the following questions to these two companies:
- A CPA, Accounting Firm
- Walmart Stores
4. Refer to question 2a - Is it more likely for the CPA firm to feel that effect or the Walmart store? Support you answer with details, insight and examples.
5. Why would the management feel that operating a centralized company would be more desirable?
a) Is it more likely for the Accounting Firm to pursue this type of operation or a Walmart store? Why?
6. What are the steps that the higher level management would take to ensure that the financial objectives of the company are met through decisions that the lower level management makes on daily basis in regards to cost, profit and investment accountability,?
a) Is it more likely for the Accounting Firm or the Walmart to have to implement these control steps?