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Discusses how firms are seeking new templates of change to remain competitive in the face of the globalization of markets. Presents a model depicting the templates for change such as world‐class manufacturing, lean production, total quality management, and business process re‐engineering followed by larger firms. Identifies some of the operational changes taking place in smaller companies based on the experiences of a larger group in the West Midlands. Explains why such smaller companies are making a more fragmented response to the need for change.

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