product and marketing divisions
As shown in the partial organization chart in Exhibit 1, Abrams had a "product division" for each of its three part groups. Each of these product divisions was managed by a vice president and general manager who was expected to earn a target return on invesment (ROI). Each product division manufactured parts in several plants and sold a major portion of its manufactured parts to OEMs. Each product division had its separate OEM sales department (see Exhibit 1) that worked closely with OEMs to develop new products or change existing products. The remaining manufactured parts were sold by the product division to Abrams' fourth division, called the AM Marketing division (see Exhibit 1) or "AM Division," as it was known to managers. This division