Chapter 11 - Chapter 11 Managerial Economic 1) Discuss the...

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Chapter 11 Managerial Economic 1) Discuss the Brabantia example. Brabantia is one of Europe’s largest manufacturers of house-hold products such as ironing boards, waste bin, food storage canisters, kitchen tools. Headquartered in the Netherlands, through 1980s and 1990s Brabantia faced increased competition for its product. Because European Economic Union creation of a “ single market” and mass-marketing retailers entered the European market driving out Brabantia’s traditional outlets- small household specialty stores. Therefore, Brabantia changes involved three important aspects of the organization that we refer to as the firm’s organizational architecture. The assignment of decision rights within the firm The methods of rewarding individuals The structure of systems to evaluate the performance of both individual and business unit This example of Brabantia illustrates that organizational architecture is an important determinant of the success or failure of firm. 2)
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This note was uploaded on 08/11/2011 for the course FIN 3604 taught by Professor Patterson during the Spring '10 term at University of South Florida - Tampa.

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Chapter 11 - Chapter 11 Managerial Economic 1) Discuss the...

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