When ceo robert nardelli took over home depot in 2000, there was little central control. store managers acted independently and costs were higher than competitors like lowes. nardelli changed the culture to focus on central control and cutting costs. to control costs, store managers were not allowed to choose products for local customers. employees lost their customer-focused attitudes, and customer service suffered. to repair this, the next ceo, frank blake, sought to restore the "orange apron" culture. what does this example best illustrate?

T-comm makes a variety of products. it is organized in two divisions, north and south. the managers for each division are paid, in part, based on the financial performance of their divisions. the south division normally sells to outside customers but, on occasion, also sells to the north division. when it does, corporate policy states that the price must be cost plus 20 percent to ensure a "fair" return to the selling division. south received an order from north for 300 units. south's planned output for the year had been 1,200 units before north's order. south's capacity is 1,500 units per year. the costs for producing those 1,200 units follow