Snowy Group (SG) is the largest ice-cream manufacturer in the world. Its headquarters are located in Ohio in the United States of America (USA). In recent years, SG has experienced fast international expansion. Its first overseas foray came in 2015, when it successfully entered the Asian market. Shortly after, it expanded into European and Oceanian markets. To manage the scope and complexity of the unfamiliar international operations, SG appointed three regional group managers to oversee its operations in Asia, Europe and Oceania (see Exhibit 1). The subsidiaries in Asia, Europe and Oceania operate as autonomous profit centers reporting to the Group Chief Executive Officer (CEO) at SG's headquarters. The regional group managers enjoy considerable freedom to adapt approaches for their local markets. They are also required to propose annual sales and profit objectives.

Snowy group USA Mr X CEO European market Mr Asian market Z Mr S Group Manager Regional Group manager Production Production Marketing department Marketing department department department