XYZ Corporation has two lines of business: (1) an established product and (2) a new product. Eddie is brand manager of the established product. Eddie has considerable experience working with the stable of customers the regularly by the established product. Brenda is the brand manager of the 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.

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

Brand Manager Decision Rights

Manager

Decision Rights over Customer Selection

Decision Rights over Product Pricing

Eddie

No

Yes

Brenda

Yes

Yes

Eddie does not have decision rights over customer selection. He is told which companies to call on. Eddie is allowed, within bounds, to set the price of the product. Brenda has decision rights over both customer selection and product pricing.

Assigning a decision right - a Yes - in the above table means the CEO determined the benefits of assigning the decision right exceeded the cost.Not assigning a decision right - a No - in the above table means the CEO determined the costs of assigning the decision right exceeded the benefit.

What are the benefits of assigning a decision right that is likely to exceed the costs where a decision right was assigned?