Responsibility Centers as a Part of a Company Structure

Subject: Company Structure
Pages: 2
Words: 297
Reading time:
< 1 min

One of the big corporations that has an experience of successful implementation of responsibility centers is General Electric. The corporation comprises many sub-businesses, such as Technology Infrastructure, Energy, Home and Business Solutions, GE Capital, and others. Consequently, development of diverse business directions demands active investment. Thus, it can be concluded that General Electric have investment centers. It provides individual opportunities for investors thus involving not only big ones. The policy of General Electric and the work of the investment center proves to be effective. For year 2017, $8 billion dividend returned to the company. The sum returned to investors is even bigger, $12 billion. The company has a century-long experience of paying a dividend to its investors. Moreover, thoughtful investment policies made it a leader in many spheres.

Another example of a company applying responsibility centers as a part of its structure is Walmart, a big retailer. Profit centers can be considered on the experience of this company. Profit centers of Walmart have some subdivisions. On the one hand, there is a division on three business segments such as Walmart U.S., Walmart International, and Sam’s Club. Therefore, there are American and international profit centers. Further subdivision includes supercenters and discount stores as well as an online shop. Moreover, every shop is divided into departments, which may also have their profit centers. The revenues for the fiscal year 2015 were $288.05 billion in the U.S. segment and $136.16 billion in the international segment. The activity of decentralized profit centers of Walmart, its departments, has a seasonal character. For example, garden sector gives more profit in spring and summer while holiday decor sector is more active before Christmas, Easter or Halloween. That is how a year-round profit is provided by Walmart departments.