Greiner’s Growth Model

• What model can help explain business growth issues?

  Greiner's model of growth
• What is a key feature of Greiner's model?

  It includes five crises during growth phases
• What are the six phases of growth identified by Greiner?

  1. Creativity
  2. Direction
  3. Delegation
  4. Coordination
  5. Collaboration
  6. Alliances
• What leads a business to transition from creativity to direction?

  The crisis of leadership
• What is the first crisis in Greiner's model?

  Crisis of leadership
• What problem arises during the crisis of leadership?

  Informal communication becomes problematic
• What is the second crisis in Greiner's model?

  Crisis of autonomy
• What happens during the crisis of autonomy?

  Managers request more control and autonomy
• What is the third crisis in Greiner's model?

  Crisis of control
• What occurs during the crisis of control?

  More layers are added to the hierarchy
• What is the fourth crisis in Greiner's model?

  Crisis of red tape
• What characterizes the crisis of red tape?

  Slow decision-making and high costs
• What is the fifth crisis in Greiner's model?

  Crisis of growth
• What typically happens during the crisis of growth?

  Businesses seek alternative methods of growth
• What is a common response to the crisis of growth?

  Businesses may pursue mergers or alliances
• What are the five crises in Greiner's model of growth?

  1. Leadership
  2. Autonomy
  3. Control
  4. Red tape
  5. Growth
• What is a key learning from Greiner's model?

  Leadership and structure must evolve with growth
• What is a criticism of Greiner's model?

  It is overly simplistic for complex businesses
• How does Greiner's model relate to the external environment?

  It doesn't account for rapid external changes
• Who needs to be aware of Greiner's model?

  A-level business students
• What is the significance of recognizing the need for change in a business?

  It helps avoid crises and improve performance