Navigation Links
Deciding when 'not' to maximize profits
Date:10/23/2013

CHESTNUT HILL, MA (October 23, 2013) - Corporate America may have a reputation for maximizing profits whenever possible, but a new study shows that's not always the case; companies sometimes deliberately leave money on the table in an effort to "get along" with and not upset their competitors. For the first time, we're learning how a company's top bosses are doing it.

Titled "Constrained Delegation: Limiting Subsidiaries' Decision Rights and Resources in Firms That Compete across Multiple Industries," (published in Administrative Science Quarterly), the research paper finds corporate heads "selectively intervene" in the everyday business of a subsidiary to deliberately sabotage decisions that could positively shift the balance of power in the marketplace.

"We showed how large multi-unit firms manage competition across markets which no study before has showed," says Boston College Carroll School of Management Assistant Professor Metin Sengul, the study's co-author. "There are two ways a corporation head can ensure a subsidiary plays nice. One is to watch over its subsidiary's shoulder everyday, which is very difficult for headquarters, especially if it has lots of different units. It's very costly and impractical.

"The other option is what we are arguing and that is to delegate decisions that will not trigger competitive aggressiveness to your units," says Professor Sengul, who argues corporations want subsidiaries to succeed to a point. "A corporate head might say to a subsidiary, 'I don't want you to anger my multimarket rivals so that we are hurt overall. Other than that, I want you to make money. Go, do good business. But whenever you are making big investment decisions - increasing your capacity by 30%, for example stop. Come and ask me. Let's talk. And then I will tell you to do it or not. Don't decide on your own.' Corporations don't want to centralize everything, they just want to centralize big decisions."

<
'/>"/>
Contact: Sean Hennessey
sean.hennessey@bc.edu
617-552-3630
Boston College
Source:Eurekalert

Page: 1 2 3 4

Related medicine news :

1. Before Deciding on Breast Implants, Consider FDA Precautions
2. Transvaginal Mesh Lawsuit News: Bernstein Liebhard LLP Notes Judge’s Decision to Uphold Verdict in First Federal Trial of C.R. Bard Vaginal Mesh Lawsuit
3. Da Vinci Robot Lawsuit News: Bernstein Liebhard LLP Notes Growing Number of Da Vinci Surgery Lawsuit Filings
4. Bugs not gay, just confused
5. Biomet Hip Lawsuit News: Bernstein Liebhard LLP Notes Upcoming Conference in Federal Biomet Hip Replacement Litigation
6. Actos Lawsuit News: Bernstein Liebhard LLP Notes Upcoming Conference in Federal Actos Litigation
7. More Than 55 Percent of STD Positives Not Worried About Distance for Match
8. Nanotech system, cellular heating may improve treatment of ovarian cancer
9. Six Conditions You May Not Realize Physical Therapists Treat
10. Perception Does Not Equal Reality When It Comes to Knowledge About Nutrient Intake: 2013 IFIC Functional Foods Survey Reveals Nutrient Shortfalls Among Americans
11. Rice U study: Technology, not uninsured patients, driving hospital costs
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:7/3/2015)... ... 2015 , ... " Selfie on a Stick ” was featured on NewsWatch ... products available to consumers. Amanda Forstrom, a technology expert and special reporter for NewsWatch, ... documenting memories. , Almost every smartphone has an incredibly powerful camera built into it. ...
(Date:7/2/2015)... Richmond, VA (PRWEB) , ... July 02, 2015 , ... ... New Albany, Mississippi. The opening is the first sweetFrog store located in Mississippi. The ... fastest growing companies in 2014. , The store, located at 104 Railroad Avenue, New ...
(Date:7/2/2015)... ... July 02, 2015 , ... The American Association of ... the Stop Overdose Stat (S.O.S.) Act of 2015 on June 23, 2015. Together ... seeks to decrease drug overdose – especially of heroin and opioid medication – ...
(Date:7/2/2015)... ... ... 2012, Patrick Achebe realized that the gift of poetry was fully in him, as beautiful ... poem, and three years later he was publishing an entire book of poetry. He knew ... "I have always believed that the best way to lift yourself up, is in the ...
(Date:7/2/2015)... ... July 02, 2015 , ... Global leader and compression ... compression socks designed for men. , For style that’s quick on its feet, ... routine. This is great news for men everywhere because a simple change in socks ...
Breaking Medicine News(10 mins):Health News:Learn How to Take Selfies like Kendall Jenner 2Health News:sweetfrog Opens First Location in Mississippi 2Health News:AAPCC Supports the Stop Overdose Stat Act of 2015 2Health News:AAPCC Supports the Stop Overdose Stat Act of 2015 3Health News:Patrick Achebe Releases Debut Book, Whispering Waves: Poems for Everyday Grace 2Health News:SIGVARIS Kicks Up Its Style for Men with the Launch of MIDTOWN MICROFIBER in a Dark Navy Stripe Pattern 2Health News:SIGVARIS Kicks Up Its Style for Men with the Launch of MIDTOWN MICROFIBER in a Dark Navy Stripe Pattern 3
... is sheer torture for your aching back too. If ... bring relief. ,Inserting fine needles into the ... pain and even moderately severe depression. ,"Acupuncture ... such as migraines and arthrosis, but also stress and ...
... Minister Pranab Mukherjee who is undergoing treatment for head injuries ... discharged// on tomorrow. The minister met with a road accident ... to the doctors attending him. ,A team of ... found him "active and cheerful". ,"He is ...
... thought that hypoglycemic coma causes brain damage. On the contrary ... the coma//, as discovered by researchers from San Francisco VA ... ,The study results may have implications on the treatment of ... it can be applied to humans. ,Insulin is ...
... plus progestin shows a 24 percent reduction in risk for ... than 10 years after menopause. ,The analysis, ... in the Kronos Early Estrogen Prevention Study (KEEPS), also showed ... 50 to 59 using hormone therapy. ,However, the ...
... be frowned upon. ,Dancing at all-night raves combined ... fluids// can produce enormous harm. Ecstasy interferes with the ... in deaths due to kidney or cardiovascular failure brought ... campaigners could warn. ,But a new study ...
... between secondhand smoke and an increased risk of Mycobacterium tuberculosis ... with TB, according to a study published in the April ... be a "cause of great concern considering the high prevalence ... Boon of KNCV Tuberculosis Foundation in the Netherlands said. ...
Cached Medicine News:Health News:Acupuncture Points Way to Relief from Many Ailments 2Health News:Recovering Pranab Mukherjee Likely to Be Discharged Tomorrow 2Health News:Glucose Causes Death of Brain Cells in Rodents Following Hypoglycemic Coma 2Health News:Glucose Causes Death of Brain Cells in Rodents Following Hypoglycemic Coma 3Health News:Early Estrogen Therapy May Reduce Cardiovascular Risks 2Health News:Study Finds Link Between Secondhand Smoke and TB Infection in Children 2
(Date:7/2/2015)... DUBLIN , June 25, 2015 /PRNewswire/ ... http://www.researchandmarkets.com/research/8mfjxh/2015_new ) has announced the addition of ... Chemistry and Immunodiagnostics: Global Challenges, Emerging Technologies, ... 2015 New Frontiers in Clinical ... Competitive Landscape is a new seven-country strategic ...
(Date:7/2/2015)... , July 2, 2015  The Commission for ... with ASHP, an organization that represents pharmacists in ... provider of continuing education for recertification of Certified ... of geriatric programs for this purpose.  ASHP will ... authorized providers for the CCGP Professional Development Program. ...
(Date:7/2/2015)... 25, 2015 Research and ... "Veterinary / Animal Vaccines Market by Product, Diseases ... to their offering. The global animal vaccines ... from $5,507.3 Million in 2015, at a CAGR of ... fueling market growth are growing prevalence of animal diseases, ...
Breaking Medicine Technology:New Frontiers in 2015 Global Clinical Chemistry and Immunodiagnostics Market: Challenges, Emerging Technologies, Competitive Landscape 2Commission for Certification in Geriatric Pharmacy Adds ASHP as Professional Development Program Provider 2Veterinary / Animal Vaccines Market 2015 - Global Forecast to 2020 for the $7.19 Billion Industry 2
... generation access device - XPOSE 4 - ... The XPOSE 4 Device is designed to ... surgery and to easily position and access ... both apical and non-apical placement on the ...
... ACROBAT SUV vacuum stabilizer from Guidant. ... ease of use. The newest members of ... stability with outstanding anastomotic site visibility ... our FlexLink technology on a stronger ...
... in 1992, ABIOMED's BVS 5000 has grown to ... system in the world to support recoverable hearts. ... U.S. Food and Drug Administration for all patients ... to make advances with the BVS 5000, expanding ...
... Dissector has application for use in the ... extraperitoneal spaces such as the retroperitoneal, preperitoneal, ... used in surgical procedures requiring dissection of ... of a quality conduit through a single ...
Medicine Products: