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Question

A company manufacturing consumer goods has grown in size. It was a market leader but with changes in economic environment and with the entry of MNCs its market scheme is declining. The company was following a centralized business model as even the minor decisions were in the hands of top level. Before 1991 this model was suitable for company but now company is under pressure to reform.
What organisational structure changes should the company bring about in order to retain its market share?

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Solution

The company must start sharing decision-making with lower and middle level also. It should introduce the concept of decentralization instead of following complete centralized business model. It must give due importance to decentralization also as in today's Fast Moving Consumer Goods industry, there is need for fast action and quick decision-making which is possible only with decentralization. By using decentralization model company will get the following benefits.

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