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Nordstrom Case Study Nordstrom Case Study 1. What is the cause of the problems described in the case? How serious are the problems? 1.1 Cause of problems: * Internal 1.1.1 Operation Level: a. Principal agent problems: Conflicts between Shareholder (long-term objective) & manager(short-term objective); Conflicts between manager(profits) and sales people(promotion). b. The decentralization system of.