National companies are business that have branches in multiple states across the nation, or provide products and services to various locations across the nation. They are extremely lucrative but also very expensive to maintain. There are more pros and cons to owning a national company, however, the biggest cons are; the difficulty to maintain effective communication between the branches and the managing office, the top managing officer’s inability to personally supervise and direct each individual branch, and intricacy of selecting community/region specific products or services for the different branches.
These cons are best observed in Sunflower Inc., a national distribution company that was run by Mr. Steelman, president of Sunflower Inc. in 1989, the year the company started utilizing a financial reporting system. As a result of the information gained through this implementation, Mr. Steelman hired Agnes Albanese to manage purchasing and pricing over the entire company and gave her the freedom to create regulations that she deemed necessary. Albanese felt that the best way to handle this position was to create a set standard of pricing and purchasing that would not differentiate between branch locations and, therefore, would not take into account the needs of the community. She also felt that local pricing changes greater than 3% and local purchases over $5,000 would need to be approved by her office. In concurrence with Mr. Mobley, vice president of finance for