COMM 210 Final: Summary of Theories
6 Dec 2016
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Organizational growth is done in 5 phases and by implementing the right strategies and managerial structures, they can resolve the crisis and move on. * each phase begins with a period of evolution and has its moments of stability and growth but eventually ends with a revolutionary period. * management practices that work well in one phase can bring crisis and chaos in another. Successful firms capitalize on economies of scale and scope; they have a functional management structure and invest in research and development and grow from related diversification. This will allow them to stay ahead of competition. Economies of scale: doing things at a bigger scale reduces costs. Economies of scope: use the same raw materials to produce various products. Managerial enterprise: making necessary investments in management, production and distribution in order to capitalize in economies of scale and scope. Research and development: new technologies, improving quality (innovation) Management hierarchy: separation of upper and lower level management.
