Chemblog A.G. (C)

In the end, Chemblog chose not to make the investment proposed by Quimic, its subsidiary in Spain (see Cases A and B). The subsidiary was forced to abide by the decision of the German head office and thus became the Spanish distributor of Chem 1. Kressing notified Quimic of the decision by e-mail, and expressed the group's satisfaction with the initiative and with the excellent management of the Spanish subsidiary. The only issue that remained was to agree on the price at which the German head office would sell Chem?1 to the subsidiary, so that the latter could develop the intended market. Since Chemblog was a decentralized company, the two divisions needed to reach an agreement. The problem was the discrepancy that existed between Quimic's objectives, those of the German head office, and those of the Chemblog group as a whole.