Question

1. In what ways might changing an organization’s structure allow it to reach the next higher level of growth in market share?

2. What might be some of the structural barriers preventing small businesses and start-up entrepreneurial ventures from growing?

Answer 1

1. The organizational structure of a company observes changes because of various internal as well as enteral factors. A company can change the structure to grow in the market. The structure can affect the overall growth of the company and vice versa. It is a strategic change that conforms with the goals, mission, and aims of the company. The strategy of the company is to grow and develop in the industry. For instance: In the beginning, the company uses a centralized structure for the management. It implies that the decision-making powers are in the hands of the top authorities. There is a change in the structure of decentralization. The process helps the efficient flow of information and engagement of the managers at all levels. Hence, it will help the company to grow in the market.

2. Structural barriers are the external or internal factors that prevent the overall functioning of the organization. The internal barrier includes the criticism from the employees. The structure might not fulfill the needs of many employees, and thus, it might invite criticism. The external barriers include: social, technological, political, and legal. The four factors play a significant role in affecting the structure of the company negatively. The factors change with the change in the environment. The business environment is dynamic, and it changes at a regular pace. Moreover, the external factors are out of the business's control, and thus, it is not easy to manage the organizational structure. The small businesses face problems in coping up with the factors