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supermarkets, is hterested in gaining access to the organic and health food retail market by acquiring a egional company in that sector. Jackson intends to

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supermarkets, is hterested in gaining access to the organic and health food retail market by acquiring a egional company in that sector. Jackson intends to operate the newly acquired stores ndependently 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 guideline or all aspects of store management in an attempt to maintain consistency among stores. Store manage 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 armers. Store managers are rewarded for exceeding self-developed return-on-investment goals with ompany stock options. Some managers have become significant shareholders in the ompany and have ven decided on their own to open additional store locations to improve market penetration. However, the ncreased autonomy has led to competition and price cutting among Harvest Moon stores within the same geographic market, resulting in lower margins. . Would you describe Health Source as having a centralized or a decentralized structure? Explain. 2. Would you describe Harvest Moon as having a centralized or a decentralized structure? Discuss some of the benefits and costs of that type of structure. Would stores in each chain be considered cost centers, revenue centers, profit centers, r investment enters? How does that tie into the evaluation of store managers? I. Assume that Jackson chooses to acquire Harvest Moon. What steps can Jackson take to mprove bal congruence between agers and the larger company

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