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Case #1 - Appex Corporation EMTM 555: Organizational Behavior & Design Professor: Dr. Johannes Pennings Friday, November 19, 2003 Submitted by Team 3 Justin Hunsaker, Kevin Shim and Vats Vananmamalai Problem Statement Appex Corporation (Appex) was a highly successful information service provider in the fast-paced cellular phone industry. It sustained impressive revenue growth of 1600% over three years between 1986 and 1989, while increasing employee count by 600%. In order to absorb these new employees efficiently, Appex restructured several times (see Appendix 1 for the chronology of restructuring events). Each restructuring, however, created new problems for the company as it sought to successfully integrate the new personnel and run the organization efficiently and productively. However, it should be noted that Appex was relatively successful while implementing rapid organizational changes. In August 1990, Appex implemented a "divisional" structure in response to problems created by the previous functional structure. In actuality, this structure was a mix between...

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