What can a firm do to reduce goal incongruence caused by


Question #1

a) What is a transfer price?

b) How can firms use transfer prices strategically?

Question #2

a) What is goal incongruence?

b) How can using the metric "return on investment" for performance evaluation lead to goal incongruence?

c) What can a firm do to reduce goal incongruence caused by using "return on investment" for performance evaluation?

Question #3

a) List and describe the 4 "levers of control" that a firm can use to motivate behavior that is consistent with its strategy?

 

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