What issues do companies face when they grow?

Introduction
To start with, there is no doubt in the fact that growing businesses come across a wide range of issues. As the company expands, diverse issues as well as opportunities require diverse solutions i.e. what worked before might not be the best approach for the present (Gomez-Mejia et. al., 2008). Recognizing and handling the common downsides related to growth is important if the company is to continue growing and thriving (Griffin, 2014). Importantly, one needs to make sure that the steps the company take at present do not create additional issues for the future. Sound leadership would help in making the best use of opportunities, generating sustainable development for the future (Christensen and Overdorf, 2000). When the markets as well as technologies shift, the do policies and rules also do. A medium or small-sized company might not require full-time human resources or recruitment staff, nonetheless at the time of peak growth, discovering the correct candidate and building the right competencies and skills is regarded as being the key for a sustainable future (Christensen and Overdorf, 2000). It has been greatly observed that business growth brings in several challenges with it that need to be properly managed and handled by the company. Otherwise, the entire growth initiative would prove to be ineffective (Anthony et. al., 2008). Further, taking the above discussion into consideration this particular paper attempts to throw light upon several challenges faced by the business as they grow their operations and procedures.
Project Objectives
The chief objectives of this paper are:
· To explore several challenges faced by the business as they grow their operations and procedures.
· To explore ways and strategies that can be adopted by the businesses for effectively dealing with such challenges.
Project Scope
There is no doubt in the fact that expansion and growth are considered as being the indicator of a sound business. Appointing more employees, increasing profit, developing market reputation are all regarded as exciting advances, which come along with growth nevertheless they could also result in new issues (Christensen and Overdorf, 2000). For a particular company, a bigger headcount could need greater office space, salary packages along with HR practices for administering the staffing needs and security (Gomez-Mejia et. al., 2008). At the time when the business is expanding, workloads could increase speedily. Thus, it is highly significant that the employees are not overloaded and that the company employs more individuals for covering the new tasks that are coming in with business growth. However, it is quite vital that the company hires the correct employees.
Additionally, as the business expands, the market also expands. Therefore, it is very important for the company to remain updated and be capable of adapting accordingly (Anthony et. al., 2008). This needs to be an on-going commitment from which, the company is continually learning. Moving ahead, properly understanding the competitors and what all they are providing, assists the company in deciding what it is offering stands out from that of the others. This makes possible for the company to set prices of the offered products competitively and helps in responding to competitors marketing campaigns effectively (Griffin, 2014). Moreover, having sound cash flow management would make sure that the company always has the resources for effectively carrying out the operations (Anthony et. al., 2008). Even the profitable companies could be unsuccessful in case if the cash flow isn’t properly managed. Further, taking the above discussion into consideration this particular paper attempts to throw light upon several challenges faced by the business as they grow their operations and procedures (Gomez-Mejia et. al., 2008).
Literature Review
It has been greatly observed that business growth brings in several challenges with it that need to be properly managed and handled by the company. Otherwise, the entire growth initiative would prove to be ineffective (Anthony et. al., 2008). Further, taking the above discussion into consideration the continuing sections attempt to throw light upon several challenges faced by the business as they grow their operations and procedures.
· Keeping up with the Marketplace
Marketplace research is not something one does like a one-off at the time when launching any business. Business settings modify repeatedly, thus the marketplace research needs to be incessant as well (Griffin, 2014). Else, the company could experience the risk of forming business decisions on the basis of out-dated information that could result in business failure (Gomez-Mejia et. al., 2008). The more one succeeds, the more it comes under competitors notice. Apparently, trustworthy clients could be quick at finding alternative suppliers who offer a superior deal. Thus, the products’ age, profit margins and sales growth go down. Properly understanding where exactly the products are within their lifecycles could greatly help one in working out ways of maximising overall outcome (Griffin, 2014). At the same time, one also needs to make investment towards innovation for building a stream of new and profitable products into the marketplace.
· Information sources
Published data could offer constructive understandings about marketplace settings and trends. Like a progressing business, an individual’s personal experience could prove to be highly valuable (Anthony et. al., 2008). One needs to be capable of building up a comprehensive outline of what buyers’ need, the manner in which they behave and lastly, which marketing strategies are highly effective. Devoting the time for talking with chief buyers proves to be quite beneficial. The suppliers along with other business affiliates could prove to be highly significant sources of marketplace data (Christensen and Overdorf, 2000). One must motivate the staff members for sharing what all they know with respect to the consumers as well as the marketplace (Gomez-Mejia et. al., 2008). Sound IT systems could also make it quite simpler to share and examine the chief information like consumers’ buying behaviour and preferences. One needs to conduct additional extra research also - for instance, for testing buyer reaction towards some new product. You might do this yourself, or use a freelance researcher or market research agency.
· Planning
The plan which proved to be effective a year ago is not necessarily suitable for the present situation. Marketplace conditions repeatedly change, thus the company needs to revisit as well as update the business plan repeatedly (Anthony et. al., 2008). As the business progresses, the strategy must also progress to suit the modified conditions. For instance, the chief focus is expected to modify from attracting new consumers to developing profitable relations along with maximising growth with present consumers. Prevailing business associations frequently hold greater ability for profit and could also offer consistent cash flow. Additionally, newer relations might perk up turnover nevertheless the profit levels might be lower that might not be...