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maystrenko53
16.04.2020 •
Business
You are a consultant to a growing technology company that is contemplating a change in its design. The company is currently set up as a functional structure. The organization is growing rapidly but is showing signs of strain. For example, top managers are seeing a substantial rise in the number of complaints from customers about the innovativeness of their latest products when compared to the competition. The company operates in an environment that is changing rapidly and is quite complex. The firm has recently expanded to several new geographic markets, and it has introduced several new products within these markets. The firm’s strategy has historically been based on keeping costs low and underpricing the competition and top management is hesitant to change their low-cost approach. Based on your understanding of contingency theory, what are your recommendations? Explain why.
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