Company Structure, Responsibility Centers, and Budgeting

Centralized or Decentralized? View the resources here before answering the questions below.

Characterize businesses that you have previously worked for or currently work for as centralized or decentralized, more vertical (taller) or flatter. How did you make this determination? What impact would this have on the three types of company responsibility centers?
If you were to structure your own company would it be centralized or decentralized, taller or flatter and why? What are the benefits or drawbacks to the type of business you would own and explain whether you would use flexible or static budgeting and why?

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I have worked firm several companies but my favourite company is the Illinois Tool Works (ITW). The company makes and markets equipment, nails and plastic six pack rings. The company is totally decentralised. The reason for characterising it as decentralised is that the company has around 400 units and each unit has a general manager. Combined, all the units make average revenue of $15 million.

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