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Understanding of contingency theory

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Reference no: EM132421686

Problem: You are a consultant to a large company that is contemplating a change in its design. The company is currently set up as a functional structure. But, it is having difficulty developing innovative new products and responding to competition in its increasingly complex environment. Customer service is also becoming a problem. The firm competes in many different geographic markets, and it sells a wide variety of products within these markets. The firm's strategy is based largely upon keeping costs low and thus underpricing the competition.

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Question: Based on the understanding of contingency theory, what are your design recommendations? Explain why.

Reference no: EM132421686

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