Defining Characteristics
- The profit center in its accounting system is the customer, that is not a product or a region, as is common in the unit organization.
- Transaction data is owned by a central corporate office, not by units or regions.
- Information regarding the performance of the firm, especially its position with customers, is available to all managers on the different dimensions (an absence of information asymmetry).
- Contrary to the unit organization, market opportunities and resources are organized under separate responsibilities to avoid risk averse behavior with respect to market opportunities
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