EBK OPERATIONS MANAGEMENT
EBK OPERATIONS MANAGEMENT
14th Edition
ISBN: 9781260718447
Author: Stevenson
Publisher: MCG COURSE
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Chapter 15, Problem 17DRQ
Summary Introduction

To determine: Advantages of centralization versus decentralization in purchasing.

Introduction: Organizations that are having numerous manufacturing centers which are arranged at inaccessible spots, it might be a critical issue to select whether to purchase for all the manufacturing centers.  There should be just a single purchase division for every manufacturing centre, and there must be one buying centre. Hierarchical situation of the acquiring capacity and also the level of centralization is a key choice.

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CASE STUDY 9-1 Was Robert Eaton a Good Performance Management Leader? R obert Eaton was CEO and chairman of Chrys- ler from 1993 to 1998, replacing Lee Iacocca, who retired after serving in this capacity since 1978. Eaton then served as cochairman of the newly merged DaimlerChrysler organization from 1998 to 2000. In fact, Eaton was responsible for the sale of Chrysler Corporation to Daimler-Benz, thereby creating DaimlerChrysler. With 362,100 employees, DaimlerChrysler had achieved revenues of €136.4 billion in 2003. DaimlerChrysler's passenger car brands included Maybach, Mercedes-Benz, Chrysler, Jeep, Dodge, and Smart. Commercial vehicle brands included Mercedes-Benz, Freightliner, Sterling, Western Star, and Setra. From the beginning of his tenure as CEO, Eaton communicated with the people under him. He immediately shared his plans for the future with his top four executives, and upon the advice of his colleague, Bob Lutz, decided to look around the company before making any hasty…
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