problems with growth Flashcards
why can quick organic growth be a risky strategy
may have different objectives and cultures
oneed time to learn new procedures, reduction in customer service, loss of sales
reducncy costs make recue profitbality
why may a business not want to grow as much as possibl;e
want to keep the culture of the business
become more complicated to manage if bigger
why might a business choose to stay small
kays distinctive capabilties
production porcess would not be appropirate for mass production, lose USP
highly differentiated tgaft offers bespokse service
e.g etsy sells hadnamde products
innvovation kays distncitve capabilties
cflexibiltiy in repsonsinf to customers needs, being small means quick and easy for staff to communicte with customers
create good relationship (archetcture)
results in more personal and higher quality customer service experience
can be run by orinal ownere
strengthen reputation
