However, the new owners do not know the business well, so they cannot either centralize authority or be very prescriptive to the line managers as to…

However, the new owners do not know the business well, so they cannot either centralize authority or be very prescriptive to the line managers as to how to run their operations. As a consequence, they design a new control system that makes each operating department a profit center. With coaching of department managers about good business practices, they manage the business on a decentralized fashion and provide the department managers with incentives for generating good results. Does AirTex Need a New Control System?