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Operations Management
Q2: A large company operated in several businesses, including computers, disk drives, financial services, and defense satellites. Each business operated as a self-contained division. However, due to an economic downturn and changing market conditions, the company sold its noncore businesses of financial services and defense satellites in order to focus only on computer-related products. However, after making these sales, its costs were still high. a. What was the root cause of the problem? b. What structural changes needs to be made to resolve it? Justify|

Q2: A large company operated in several businesses, including computers, disk drives, financial services, and defense satellites. Each business operated as a self-contained division. However, due to an economic downturn and changing market conditions, the company sold its noncore businesses of financial services and defense satellites in order to focus only on computer-related products. However, after making these sales, its costs were still high. a. What was the root cause of the problem? b. What structural changes needs to be made to resolve it? Justify|

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Q2: A large company operated in several businesses, including computers, disk drives, financial services, and defense satellites. Each business operated as a self-contained division. However, due to an economic downturn and changing market conditions, the company sold its noncore businesses of financial services and defense satellites in order to focus only on computer-related products. However, after making these sales, its costs were still high. a. What was the root cause of the problem? b. What structural changes needs to be made to resolve it? Justify|
Transcribed Image Text:Q2: A large company operated in several businesses, including computers, disk drives, financial services, and defense satellites. Each business operated as a self-contained division. However, due to an economic downturn and changing market conditions, the company sold its noncore businesses of financial services and defense satellites in order to focus only on computer-related products. However, after making these sales, its costs were still high. a. What was the root cause of the problem? b. What structural changes needs to be made to resolve it? Justify|
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