About companies’ growth

Thursday, 21 May 2015

by Laurențiu Neacșu – gaming expert

Each company manager is involved usually in which we call “growth objectives”. Since start-up, the management team is following the growth strategy, since the development is the one which – on short term – allows the company to survive. But, when the breakeven is passed, the management has to strive towards a new goal: organization sustainability

Junior managers, chasing high profit rates, overlook this aspect, but later they will be overwhelmed by external or, most important, internal threats. No matter how bureaucratic (structured) one organization is, it requires a working adaptive and natural component. If not, eventually the system will stuck and collapse under its own weight. A typically case one can find is the oversized sales crew of a company which cannot solve all the orders since the rest of the staff is short. Sales out of control may deliver false expectations to the customers and chaotic inputs in manufacturing processes, eventually generating quality issues. The final result: lost market share.

Therefore, in order to avoid the soap bubble pattern, which grows until it blows up, companies have to provision change management as a priority. It is a fact that passing time changes each organization. Both external factors (law changes, season, general economy etc.) and internal factors (team growth, data flows complications etc.) loosen organization bounds.

For each step in company’s development internal change is required with the purpose of realigning objectives within departments, to reconfigure business process or update HR policies. The competent management has to “feel” the needs of the organization and to develop specific and tuned instruments to ensure the smoothness of business processes. The corner shop is not run the same as a hypermarkets chain.

The gambling companies of he last ten years in Romania became ideal examples of accelerated growth under heavy variation of external threats. Most of external changes – number of machines, control bodies, security law, fiscal code, and technical requirements – affected a lot the business. Therefore, many companies on profit until 2009 were closed rapidly until second half of 2012. Others diminished their growth.

It is important to say that big investment in a gambling business model in Romania is not necessary enough for success, but only a requirement. Another bet, at least as important, is putting up the management team to be creative enough and competent enough to anticipate threats and market fluctuations in order to respond successfully by plan and implement adaptations.

Author: Editor

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