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According to Gustavsson, in order to prosper in a more challenging market environment, developing a specialty business was the only viable approach. The goal was to shift 50% of its commodity business into undetermined specialty by 2000. However, the Division had shifted only 10% of its business to specialty products by 1997.
The challenge was to overcome the overall resistance to change and find a way to get the organization behind ArcTech Flooring, the new specialty product. A culture of customer disengagement and communication problems among divisions along with past norms held by key senior managers made initiating radical innovation difficult...
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