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Transcription of this question: 3.TransferTransfer is a publicly traded shipping business. Its success has been built on its ambitious missionstatement:”Our shipping business will always be about providing a first class service to our customers andmaking it last. Whatever it takes.”Managers at individual regional profit centres were empow’ered to make their own decisions inresponse to local market conditions. Transfers financial reward package allowed employees toshare in their regional profit centre’s performance through an employee share-ownership scheme.Transfer had consistently won awards for its excellent customer service. Management and staffturnover was very low.However, after years of profits that were low by industry standards, Transfer suffered a significantfinancial loss. The current chief executive officer (CEO) claimed it was due to increased globalcompetition and rising direct costs. Transfers non-employee shareholders, who owned 60 % ofTransfer, demanded that immediate action be taken. At the most recent annual general meeting(AGM) the CEO was forced to resign. A new CEO, Heather Davies, was appointed.Heather had a reputation as an autocratic leader. She had a successful record of returning lossmaking companies to high profits, but only after making significant changes. At her first pressconference, Heather announced her plan to:reduce two-way communication and create a much higher degree of centralization withinTransferremove all profit centres.Immediately, Heather dismissed many managers who were, in her opinion, unproductive.She defended her actions by arguing that Transfer had become inefficient, with poor decisionmaking at regional levels. Heather argued that regional profit centre managers were setting theirown objectives which did not follow the mission statement.At the same time, an unknown manager gave a national newspaper interview which was highlycritical of Heather’s leadership style, with examples of workplace unrest. When Heather found out,she threatened to dismiss any manager who questioned her authority or the new plan. Six monthslater, Transfers share price had grown by 15 % and profits had begun to significantly increase.(Question 3 continued)(a)(b)(c)(d)Identify two characteristics of a company with a high degree of centralization.Describe one benefit of an employee share-ownership scheme.Explain one benefit and one cost of Transfers mission statement.Examine the decision to remove all profit centres.Discuss the effectiveness of Heather’s leadership style at Transfer.