1. NI x 5

2. SE-GW-I

3. (Stock Price/EPS)-NI

4. Stock Price x # of Shares

1. Reserve CEO for top

2. COO underneath CEO

3. No duplicates

4. Functional Positions all report to CEO

5. One title per person

6. Functional Positions on same level as COO

7. President for each division

1. Recruitment

2. Promotion

3. Transfer

4. Training

5. Restructuring

6. Role Modeling

7. Mentoring

1. SBU

2. Functional

3. Divisional

4. Matrix

5. Hierarchal

6. Centralized

7. Decentralized

1. Simple and inexpensive

2. Capitalizes on the specialization of business activities

3. Minimize need for elaborate contol system

4. Allows for rapid decision making

1. Accountability forced to top

2. Minimizes career development

3. Low employee/manager morale

4. Leads to communication problems

1. Clear accountability

2. Allows local control of situations

3. Promotes delegation of authority

4. Create career development chances

1. Can be costly

2. Duplication of functional activities

3. Requires skilled management force

4. Requires an elaborate control system

1. Prepare projected income before balance sheet.

2. Use % of Sales to project COGS.

3. Calculate projected net income.

4. Subtract out any paid dividends.

5. Project balance sheet items.

6. List remarks on projected statements.

1. Profit levels increae, EPS levels decrease.

2. Control.

3. Higher price, lower ownership and control.

1. Improved coordination and accountability

2. Planning is more manageable

1. Requires additional management

2. VP is ambiguous

1. Identify aspects of organizational activity

2. Take corrective actions when EMS occur

3. Conduct an audit operation of the EMS