In the Celtex case study, Leo Garcia, President of the synthetic chemical division, regularly fails to sell his products to and through the consumer products division. This is because:

1) There is a market-based alternative to his products that are cheaper.
2) Celtex has a faulty organizational structure that regularly cheats Garcia.
3) The head of the consumer products division does not understand the difference between price and value.
4) Garcia produces inferior products.