XYZ Corporation has two lines of business: (1) an established product and (2) a new product. Dan is the brand manager of the established product. Dan has considerable experience working with the stable of customers that regularly buy the established product. Brenda is the brand manager of the new product. Brenda was hired because of her experience working at a couple of the firms in the industry where the new product will be sold prior to joining XYZ Corporation.

The CEO has assigned decision different decision rights to the two brand managers.

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