Week 6 DB

Week 6 DB - Week 6 1. Why do organizations grow? What major...

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Week 6 1. Why do organizations grow? What major crisis is an organization likely to encounter as it grows? Organizations seek to change, themselves to obtain control over scarce resources and reduce uncertainty. They can increase their control over resources by growing and becoming larger. Organizational growth is the life cycle stage in which organizations develop value-creation skills and competences that allow them to acquire additional resources. Growth allows an organization to increase its division of labor and specialization and thus develop a competitive advantage. According to Greiner’s five-stage model of organizational growth, organizations experience growth through (a) creativity, (b) direction, (c) delegation, (d) coordination, and (e) collaboration. Each growth stage ends in a crisis that must be solved by making the appropriate changes if the organization is to advance successfully to the next stage and continue to grow. 2. Choose an organization or business in your city that has recently closed, and analyze why it failed. Could the organization have been turned around? Why or why not? A recent business that just closed in Montgomery, Al was the Hooters restaurant. I think they failed because they were not generating enough revenue. Even though it was based on pretty girls serving you food, they still did not make a lot people go there to eat. Since the economy has been the down fall than it make it hard for people to go out to eat. I personally think Hooters
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This note was uploaded on 11/01/2011 for the course MGT 4471 taught by Professor Miller during the Fall '11 term at Troy.

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Week 6 DB - Week 6 1. Why do organizations grow? What major...

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