Stark Enterprises is a highly diversified conglomerate with divisions competing in a number of different industries. The focus of the company's CEO, Tony Stark, was previously focused on increasing corporate synergies. As a result, there is a large amount of horizontal communication and intercompany transactions occurring throughout the company. He views the complete lack of silos at Stark Enterprises as major achievement. Traditionally, Stark Enterprises was heavily involved in the oil and gas industry; however, a major oil spill severely hurt the company's image. Since then, Tony has been focusing the company on its "green" industries. Today, the renewable energy division brings in twice as much income as the rest of the company combined. This division has large cash reserves and offers their employees a generous compensation and benefits package. Despite their substantial cash flows, the renewable energy division receives a large amount of money when internal funds are allocated.

Required:

1. List and explain four reasons why this would happen (hint: think about this department's power) (8 marks)

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