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Universitat Pompeu Fabra Facultat de Ciències Econòmiques i Empresarials. Curs 2011-2012 Business Economics II
Seminar no.: ....................... 5 Topics................................. 10:Decision Rights, 11: Financial Contracting Seminar week:.................... February 27th – March 2nd

Rules: i. Answers must not exceed 1,000 words. (Use the integrated word count tool.) Any textexceeding the first 1,000 words will not be graded. ii. The names of all group members must appear at the top of the first page. Please deliver only one copy of the answers, which will be valid for allgroup members. iii. The group that will present their solutions should prepare slides and make sure that all group members are equally prepared to present and defend their content.

1. Fathers andSons Jan van der Schmidt was the founder of a successful chain of restaurants located throughout Europe. He died unexpectedly at the age of 55. Jan was sole owner of the company's common stock and wasknown for being quite authoritarian. He personally made most of the company's personnel decisions. He also made most of the decisions on menu selection, food suppliers, and advertising programs.Employees throughout the firm are paid fixed salaries and were closely monitored by van der Schmidt. Jan's son, Karl, spent his youth driving BMWs around Holland and Germany at high speeds. He spent littletime working with his father in the restaurant business. Nonetheless, Karl is smart and just received his MBA degree from a leading business school. Karl has decided to follow his father as the chiefoperating officer of the restaurant chain. What advice about organizational architecture for the company would you offer Karl now that he has taken over? 2. US Matrix Companies Why do you think many USfirms have reorganized their international divisions from a country focus to matrix organizations focusing on both country and product? 3. Telecommuting Many companies are making increased use of...