Over the peat seveml years, Claire Jackson, CEO and founder of Easy Learning (H,), has been working to expanid operations ousside of Canada. In particular, she has placed two loagtime, Ituesed managers in Paris and Huerios Aires in order to develop the European and South American markets. Comptitice is less fieree in these parts of the woeld and the supply of satiled vechinical and education staff is in pood supply. Claire was decply imolved in the develogesent atd expansion ketivaies for the firs few years. Now that the naw divisions are up thd running she has decided to decentratize by erealine a Europeai and a Soith Ameriean division and fecting their current loeat manapers in charze. After the firs full year of operations under the deceniralised strecture, the centribution format inceme satencent for the eompary as a whole is as follues: Sales Varibble oxpenses Coatrikution margin Foxd expenses Operting L.os When the divisions were created, EL invested hervity it operating assets to set up and oreamize the new oparations. Therefore. Claire decided 10make these divilens invstment centres and to require each division to generate a retura on imestment on. aho based ca ROI. Average operoting essets of the Europenn division are $1,000,000 and $435,000 for the 5outh American divisioe Claire is coveerned that the compary las incured an operaning koss for the firs time this year, alrhough she is not conplatoly surprised given her decisias to expand. She wodd lite to isokie the problem and decide hox to respond she is concerned that. che peoblem mop be her lack or direct supervision of the newy crested divisioes. REQUIRED 1. Use the follonige infortaticu to help the Cio benter undecvand the protiatily of esch geogmphic segmene. What does jour malysis whoged the should do? ytad? If not, what ean the CEO suveest to hebo these managers raise their ROT next jeir? Over the peat seveml years, Claire Jackson, CEO and founder of Easy Learning (H,), has been working to expanid operations ousside of Canada. In particular, she has placed two loagtime, Ituesed managers in Paris and Huerios Aires in order to develop the European and South American markets. Comptitice is less fieree in these parts of the woeld and the supply of satiled vechinical and education staff is in pood supply. Claire was decply imolved in the develogesent atd expansion ketivaies for the firs few years. Now that the naw divisions are up thd running she has decided to decentratize by erealine a Europeai and a Soith Ameriean division and fecting their current loeat manapers in charze. After the firs full year of operations under the deceniralised strecture, the centribution format inceme satencent for the eompary as a whole is as follues: Sales Varibble oxpenses Coatrikution margin Foxd expenses Operting L.os When the divisions were created, EL invested hervity it operating assets to set up and oreamize the new oparations. Therefore. Claire decided 10make these divilens invstment centres and to require each division to generate a retura on imestment on. aho based ca ROI. Average operoting essets of the Europenn division are $1,000,000 and $435,000 for the 5outh American divisioe Claire is coveerned that the compary las incured an operaning koss for the firs time this year, alrhough she is not conplatoly surprised given her decisias to expand. She wodd lite to isokie the problem and decide hox to respond she is concerned that. che peoblem mop be her lack or direct supervision of the newy crested divisioes. REQUIRED 1. Use the follonige infortaticu to help the Cio benter undecvand the protiatily of esch geogmphic segmene. What does jour malysis whoged the should do? ytad? If not, what ean the CEO suveest to hebo these managers raise their ROT next jeir
