Should Robert Fung Intervene? As shown in Q1 it seems like financially beneficial to the whole group if Robert intervenes the case and forces ISD to choose HighResolution as the supplier for the X73. However, as stated clearly at the beginning of the case, MedQuip managers ran the company on a highly decentralized basis, there is no point to abandon such autonomy in particular division managers compensation scheme is determined based on their performance...
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However, as stated clearly at the beginning of the case, MedQuip managers ran the company on a highly decentralized basis, there is no point to abandon such autonomy in particular division managers compensation scheme is determined based on their performance. Also this is a rather new business and contributes only a small portion of the revenues for each of the divisions involved...
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