The above argument seeks to establish that Apogee is less profitable due to decentralization. I believe that to establish the conclusion that centralization will improve profitability, enough arguments have not been put forth - first to establish that decentralization is the biggest reason for decrease in profitability and secondly centralization again would help improve the productivity.
The argument need to explore the reasons why the decision to decentralize Apogee company was taken up. The reasons could be increasing footprints, faster growth, moving into different geographies which require local presence, etc. It is also possible that Apogee is in investment mode and expansion is part of the current business strategy. To find the answers to these questions Apogee operations data, customer spread, target market, revenue split geography wise need to be analyzed.
On analyzing the second part of the author’s argument where he advocates that returning to centralization will improve productivity in not well found. It needs to see the problem areas where the operational effectiveness is low and whether cost benefit analysis of centralizing that pocket makes sense. Also impacts on customers and prospects should be account for before taking a call on centralizing all or pockets of inefficiencies Apogee field offices. .
The argument need to explore the reasons why the decision to decentralize Apogee company was taken up. The reasons could be increasing footprints, faster growth, moving into different geographies which require local presence, etc. It is also possible that Apogee is in investment mode and expansion is part of the current business strategy. To find the answers to these questions Apogee operations data, customer spread, target market, revenue split geography wise need to be analyzed.
On analyzing the second part of the author’s argument where he advocates that returning to centralization will improve productivity in not well found. It needs to see the problem areas where the operational effectiveness is low and whether cost benefit analysis of centralizing that pocket makes sense. Also impacts on customers and prospects should be account for before taking a call on centralizing all or pockets of inefficiencies Apogee field offices. .
