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Jackson Markets, a chain of traditional supermarkets, is interested in gaining sees to the organic and health food retail market by acquiring a regional company

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Jackson Markets, a chain of traditional supermarkets, is interested in gaining sees to the organic and health food retail market by acquiring a regional company in that sector. Jackson intend to operate the newly acquired stores independently from its supermarkets. One of the prospects is Health Source, a chain of 20 stores in the mid-Atlantic region Buying for all 20 stores is done by the company's central office. Store managers must follow strict guidelines for all aspects of store management in an attempt to maintain consistency among steres Store magen are evaluated on the basis of achieving profit goals developed by the central office The other prospect is Harvest Moon, a chain of 30 stores in the Northeast. Harvest Moon managers are given significant flexibility in product offerings, allowing them to negotiate purchases with local organic farmers. Store managers are rewarded for exceeding self-developed return-on-investment goals with company stock options. Some managers have become significant shareholders in the company and have even decided on their own to open additional store locations to improve market penetration. However, the increased autonomy lus led to competition and price cutting among Harvest Moon stores within the same geographic market, resulting in lower margin True or False: Health Source has a centralized structure, True False

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