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List the changes that occur as an organization grows in size. List the changes that...

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esther77 | Honors

Posted May 9, 2013 at 2:40 PM via web

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  1. List the changes that occur as an organization grows in size.
  2. List the changes that occur as organization ages over time.

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portd | (Level 3) Associate Educator

Posted May 9, 2013 at 6:33 PM (Answer #1)

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1. As an organization grows in size the following changes take place:

  • They typically hire more staff
  • They invest more in physical assets such as equipment, and/or in inventory if they are a retailer or wholesaler
  • They may open multiple locations within a geographic area
  • They may expand their operations into foreign jurisdictions
  • They may go from being a privately-held organization to becoming a publicly-traded entity
  • They may hire third-party enterprises to help them handle their growth, such as consultants or accounting firms
  • They may outsource some of their production to maintain or lower costs

2. As an organization ages over time the following changes take place:

  • They invest in up-to-date training programs as long-term staff retire and new employees are required
  • They perform analyses of their operations in order to stay current with new ways of doing things as their old programs and processes may be dated
  • They invest in new plant and equipment to replace aged physical assets that are no longer operating efficiently
  • They invest in new computer programs to replace their dated programs that are no longer allowing the company to operate in a streamlined fashion
  • Sometimes they divest of non-core operating segments that over the years have failed to provide the Return on Investment (ROI) the company requires. Therefore, they get back to their core business that established the company in the first place.
  • Senior management often steps aside to make room for a new breed of management
  • They may wind down operations, especially if the organization is family-owned and no family member wishes to continue with the business. Therefore, the company may go up for sale.

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