Executives from the Johnson and Johnson healthcare organization were aware of the serious design defect with an artificial hip but chose to hide this information from both the patients and the general practitioners. The company allowed its various subsidiaries to establish and implement their strategies and function with their resources.  Many of the subsidiaries structured their specific human resource and finance departments. This form of decentralization led to substantial overhead costs in the company. Even though the company enjoyed numerous benefits from providing its several subsidiaries with considerable autonomy, it exposed the company to several risks