3.2.4 Problems Arising from Growth

• Business growth refers to the increase in size, revenue, or market share of a business over time
• Business growth can only be achieved through organic expansion.

  False
• Match the type of growth with its description:

  Organic Growth ↔️ Expansion through internal efforts

  Inorganic Growth ↔️ Expansion through external means
• Organic growth involves expansion through internal efforts such as new marketing strategies.
• What is an example of inorganic growth?

  Acquiring a competitor
• Inorganic growth may occur when a company acquires a smaller firm.
• Inorganic growth involves expansion through external means like mergers and acquisitions.
• What is an example of organic growth for Apple?

  Launching new products
• Rapid business growth can lead to operational inefficiencies.
• Order the problems arising from rapid business growth:

  1️⃣ Loss of Control

  2️⃣ Funding Shortages

  3️⃣ Operational Inefficiencies

  4️⃣ Quality Issues

  5️⃣ Employee Turnover
• What is a solution for funding shortages during rapid growth?

  Obtain additional funding
• Rapid growth may lead to quality issues due to increased volume and reduced oversight.
• Siloed teams and information overload are examples of internal communication challenges.
• What is a strategy to improve internal communication in a growing tech company?

  Daily stand-up meetings
• External communication challenges include customer service inconsistencies and inconsistent branding.
• Match the type of communication with its challenge:

  Internal Communication ↔️ Siloed teams

  External Communication ↔️ Inconsistent branding
• Which collaboration platform can improve internal communication in a growing company?

  Slack
• Business growth refers to the increase in size, revenue, or market share
• Business growth can only be achieved through organic growth.

  False
• Match the type of growth with its description:

  Organic Growth ↔️ Expansion through internal efforts

  Inorganic Growth ↔️ Expansion through external means
• A company like Apple may experience organic growth by launching new products
• Inorganic growth always involves acquiring another company.
• Order the key problems in rapid business growth:

  1️⃣ Loss of Control

  2️⃣ Funding Shortages

  3️⃣ Operational Inefficiencies

  4️⃣ Quality Issues

  5️⃣ Employee Turnover
• Decentralized structures improve flexibility but can lead to inconsistent practices
• Cash flow problems arise when expenses exceed revenue.
• Substantial capital expenditure can lead to reduced liquidity
• Match the resource with its problem and impact:

  Inventory ↔️ Excess or shortages lead to lost sales

  Human Resources ↔️ Staffing shortages reduce productivity

  Equipment ↔️ Overloaded machinery causes delays
• Organic growth is achieved through internal efforts
• Decentralized management can help prevent loss of control during rapid growth.
• Order the strategies for improving communication during business growth:

  1️⃣ Implement regular meetings

  2️⃣ Use collaboration tools

  3️⃣ Standardize processes

  4️⃣ Provide clear guidelines
• Common communication challenges in growing businesses include managing increased team sizes
• To improve internal communication, businesses can implement regular meetings
• To improve external communication, businesses can standardize their customer service approach
• Cultural changes and leadership transitions can impact organizational dynamics.
• Autocratic leadership is characterized by quick decision-making but can lead to low morale
• Democratic leadership encourages teamwork but may result in slower decisions
• Transformational leadership inspires and motivates employees.
• New management hires can lead to leadership transitions.
• Low employee morale can reduce productivity due to disinterest and inefficiencies
• Recognition programs are a strategy to improve employee morale.