Varsth is a multinational company registered in Denmark. The production plants of the company are distributed in three geographic areas: Europe, North America and South America. The company produces and markets three lines of product: washing machines, television sets and small electrical appliances, respectively P1, P2 and P3. The production of the three lines occurs independently, whereas the commercial channels used for the sales are common to all products. The organizational structure of Varsth (represented in Figure 1.16) is the divisional type (on the basis of the specific geographic