Birch Paper Company CASE Study Example | Topics and Well Written Essays - 250 words

Birch Paper Company - Case Study Example Brunner was adamant on that issue and claimed he had invested much in that development. Decentralization of the various units is successful as proven by the increased proceeds from each division. The significant result of the decentralization is the enhancement in the design of the boxes. If the company were still operating under the Birch Company, no manager would have taken the initiative to invest in the development of boxes. Decentralization has undermined the cooperation among the divisions. If the management was centralized, the selling of the supplies to the divisions would have been coordinated. The selling prices for the supplies would have been favorable. Mr. Brunner had invested heavily in the research and development of boxes and expected high returns. Yes, he is not considering the overall profitability of Birch Company and competition from other box producers. The best bid for the best interest of Birch Company is that of Eire Papers. This is because the bid is cheaper than that of Thompson division. The commercial vice-president should intervene on that matter. If he fails, the future of Thompson division will be at stake due to its high prices. He should advice Mr. Brunner to reduce the prices for its