PROBLEMS LINKED TO BUSINESS GROWTH AND HOW TO OVERCOME

• LARGER BUSINESS IS DIFFICULT TO CONTROL- Operate the business in small units – this is a form of decentralisation. DECENTRALISATION- Is the act or process of decentralizing an organisation or government(moving control from a single place to several smaller ones)
• LARGER BUSINESS LEADS TO POOR COMMUNICATION- Operate the business in smaller units Use latest IT equipment and telecommunications – but even these can cause problems.
• EXPANSION COST SO MUCH THAT BUSINESS IS SHORT OF FINANCE- Expand more slowly – use profits from slowly expanding business to pay for further growth Ensure sufficient long-term finance is available.
• INTEGRATING WITH ANOTHER BUSINESS IS MORE DIFFICULT THAN EXPECTED(FOR EXAMPLE DIFFERENT MANAGEMENT STYLES OR WAYS OF DOING THINGS)- Introducing a different style of management requires good communication with the workforce – they will need to understand the reasons for the change.