Apogee: Decentralisation, A case study!

The following appeared in a memorandum from the business department of the Apogee Company. "When the Apogee Company had all its operations in one location, it was more profitable than it is today. Therefore, the Apogee Company should close down its field offices and conduct all its operations from a single location. Such centralization would improve profitability by cutting costs and helping the company maintain better supervision of all employees." Discuss how well reasoned . . . etc. …

…firm is medium or small, it's strategic location can be pivotal and important. For a big firm segregate the importance of the manufacturing facility and the service and distribution facility. For LG's headquarters to be in Gurgaon or Chennai or Mumbai it does not make a difference. But for a Unimoto to be located at a Bombay talkies or a ansa industrial estate, it affects the cost and other factors like availability to key Customers