Kranworth Chair Corporation (KCC): Case Study Questions and Answers

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Assessment Details:

• Words – 1000+

 

QUESTION

Referring to Kranworth Chair Corporation (KCC) (page 275):

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?

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

3. Evaluate KCC’s new performance measurement and incentive system. Assuming that KCC will retain its new divisionalized organization structure, what changes would you recommend, if any? Why?

4. Assume that the R&D function is to be decentralized (given to the divisions). Would this necessitate changes to KCC’s performance measurement and incentive system? If so, which and why? If not, why not?

 

(Total: 20 marks)

References

Book

Merchant, K.A. and Van der Stede, W.A., 2007. Management control systems: performance measurement, evaluation and incentives. United Kingdom: Pearson Education.

Journals

García-Arca, J., Garrido, A.T.G.P. and Prado-Prado, J.C., 2017. “Sustainable packaging logistics”. The link between sustainability and competitiveness in supply chains. Sustainability, 9(7), p.1098.

Grzyb, T., Dolinski, D. and Kozłowska, A., 2018. Is product placement really worse than traditional commercials? Cognitive load and recalling of advertised brands. Frontiers in psychology, 9, p.1519.

Wai Lai, I.K. and Liu, Y., 2020. The effects of content likeability, content credibility, and social media engagement on users’ acceptance of product placement in mobile social networks. Journal of theoretical and applied electronic commerce research, 15(3), pp.1-19.

 

 

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