Designs by Tayzsa is currently meeting their yearly objective and they are looking at ways to maximize their profits. The current business model uses an internet based business structure to target and sell customer products. This has helped maximize profit margins within the organization and we are now looking into other opinions. The system that is currently being utilized is a direct from supplier distribution system. This system has its pros and cons but has ultimately helped toward the success of the business model. The plan was always to look into alternative methods that will help benefit the company in the future. An option the company is looking at is establishing decentralized location to conduct its current business practice. The …show more content…
The owner currently makes all decisions regarding the sales, manufacturing, and distribution of products within this company. A decentralized company business structure is one in which company executives place important decision-making authority in the hands of front line and local managers versus reserving all critical decisions at the top (Kokemuller, 2016). You are asked to comment on responsibility centers and their functions. A responsibility center is a combination of small businesses that can operate as an organization. The manager of a responsibility center is responsible for the activities of the organizational subunit and for the results of specified financial and non-financial performance measurements (Wilkinson, 2013). Designs by Tayzsa is develop on a small business model and as the company grows there are possibilities for expansion. Responsibilities center seem to work for big organization but may not work for smaller entities. Cost centers can be a drain on an organization. Do you have any thoughts about limiting the number of cost centers and control costs? Present specific