Consider the following two settings:
Setting 1: Firm A operates a set of branch offices. Branch offices usually can fulfill customers’ needs themselves. However, occasionally, they lack a specialist in the area or may not have the needed programs. In such cases, they refer the customer to other branches (or get the specialist to visit for a day). The other branch is willing to spare the specialist because many customers transact with many branches (e.g., a corporation with many divisions interacting with the many branches of a bank).
Setting 2: Firm B operates a set of branch offices. These offices are self-contained, and there is little interaction across branches. Customers tend to be branch specific.

Required:
Comment on why firm A’s incentive plan for branch managers might include both local and global (e.g., regional) measures of performance. Why is such a feature of less importance in firm B?