Analysis of Entrepreneurial Growth: Strategies and Challenges Report

This report provides a comprehensive analysis of entrepreneurial growth, focusing on the structural elements and challenges faced by organizations. It examines the impact of process and system issues, cultural factors, and innovation problems on a company's expansion. The report delves into how organizational structure aids in overcoming these challenges through task allocation, creating a flexible environment, and implementing effective follow-up mechanisms. Furthermore, it explores the concept of exit strategies, detailing their advantages, such as financial protection and smooth operations, and disadvantages, including potential threats to employees. The report concludes by highlighting the critical aspects of managing growth and the importance of strategic planning for long-term business success, offering valuable insights for entrepreneurs and business leaders.

RUNNING HEAD: Entrepreneurial Growth
Entrepreneurial Growth
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Entrepreneurial Growth 1
The purpose of this paper is to enlighten the reader about the structure of growth of an
organization present in the society. The reflection highlights the growth pain that an organization
faces while working in the external environment (Yeo, & Park, 2018). It also discusses about the
ways in which organizational system and structure helps the company in overcoming the growth
pains. Exit strategy refers to a contingency plan that is executed by the business owners to
liquidate the assets and meet the insolvency liability of the company. Further, advantages and
disadvantages of growth strategy have also been highlighted. Further, more details about the
report are discussed below:
Process or System Issues: The system and process of an organization works to manage the
workings of the employees. Rapid growth in the company initiates disturbance in the functional
system that increases stress of the organization. According to my perspective, with the increase
business functions of the company, the organization faces difficulty to expand the process as
well. In addition, I believe that big firms face more problems in changing the process in order to
grow and diversify (Massa 2016). Now the time has come where people like to work in flexible
working hours and lots of space as well but if order to assign such innovative people with work
and conduct brainstorming sessions, it is important for the management to activate accurate
leadership skills in the environment. This strategy is most critical when the business is expanding
because at this time the business needs to change the process and welcome new growth
opportunities. There are various other aspects that a CEO of the organization face like employee
disputes and personal life problems as well (Flamholtz, & Randle 2007).
Cultural Issues: culture I believe helps an employee to stay in an organization for a longer period
of time. So, if there is an issue in the organization’s internal culture the management will
definitely face difficulty in the progressing and reaching to its target as well. According to me,
the world is becoming flat and the organizations are hiring people from different parts of the
world to work with them. However, if the internal environment is adequate then subsequently
expatriates will feel cultural shock and they will leave make the company incompetent in the
market. Also, no organization can hide inefficiencies of the internal culture from the public. This
issue is most critical while hiring expatriate employees because if they will leave the job then it
will affect the reputation of organization as well (Hofer, & Charan 1984).

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Innovation Problem: I believe the basis rule for a business growth is consistency of work and
truthfulness among employees. No organization grows by regularly innovating the business
functions again and again. Companies now a days face difficulty in understanding the essence of
innovation and how they should conduct it. As the matter of fact innovation is something that
gives life to a dead business but that does not mean the business should go on innovating the
process in order to grow. In this way, the management will face difficulty in tackling new
process and will certainly fail. Innovation should be initiated in the business according to the
strength and capabilities of the business to handle it. This type of issue is most critical when the
business has introduced new innovative idea (Roberts 1999).
I realized that growth is built on the foundation of a great team and use of right type of
technologies as well. Organizational structure of an organization helps the business to define
how the business should conduct various functions in order to achieve the objective like in the
case of IKEA, definite business structure helps the organization to resolve various issues and
increase the efficiencies as well. Further, I believe that there are various ways in which
organizational structure and system helps the management to reduce their growing pain. These
features of organizational structure are discussed below:
Allocation of tasks: the organization structure of the business helps in allocating the work to
right type of people. This process helps in eliminating the repetition of work in business. I
believe that this one of the best feature that helps the business to save cost and reduce the
workload of employees of the company. This feature also helps the business in providing right
amount of authority as well as responsibility to the employees. With such obligation, the
employees get motivated to work and report the results to the management. Communities and
commitments also help the organization to develop an organized structure that is required for the
business to solve the organizational problems. By understanding the relationship between
community and the organization, the business can easily develop innovative strategies and
structure to grow and solving growing pain issues as well (Dahlander, & Frederiksen 2012).
Creation of flexible environment: In my perspective, there is no difference between the
organizational system and the internal environment as the culture of the company is formed
through the organizational structure only. Based on the organizational structure, the internal
environment of the works. For instance, the organization structure of Google Inc. motivates the

Entrepreneurial Growth 3
people to form a flexible working environment whereas E & Y Company has comparatively
inflexible working environment that motivates the people to comply to the working hours and
follow all the rules without waiving any of it (Jeppesen, & Frederiksen 2006).
Follow-Up: Lastly, I realized that organizational structure also helps in initiating follow up of the
business. This reduces the growing pain of business as the top or middle level management
follow up every business functions and in case of deviations report them as well. This aspect
results in long term smooth functioning of the company. Online communities act as a huge help
for the organizations to attain information about the external market and increase the capabilities
of the structure internally (Faraj, Jarvenpaa, & Majchrzak 2011).
Exit strategy of a business refers to a situation where a person leaves their current position after
predefined objectives have been achieved or to mitigate the possible failure. A company or
individual without an exit strategy may be in a quagmire. Further, the advantages and
disadvantages of exit strategy are discussed below:
Advantages
Protect the business financially: most of the business plans includes languages that address
executive compensation when the business is no longer in action. An accurate exit strategy helps
the business in setting of the bills on time and paying offs the employees according to their
compensation plan. Thus in this way, I believe that all the personal finances are protected using
financial strategies for the company.
Smooth Operations: I believe that business exit strategy should incorporate all the information of
the successor needs to run the business. This type of strategy makes sure that the time and money
of business is not wasted in gathering basic information like salaries, bank account details etc.
By attaining such information and influence from the online communities, the exit strategies
become smooth to function (Fisher 2018).
Disadvantages
Threat for employees: the exit strategies create problem for the business employees as they face
problem when the business is shut down or acquired by any other organization. I believe that exit

Entrepreneurial Growth 4
strategy always create losses for employees as they face the threat that the other organization
might cut off them from business of assign them role that they are incapable of doing.
Many times the exit strategy does not go according to the expectations due to difference in
financial assets or other resources of the company. This results a difference in planned and actual
strategy that creates a fuss between the business functions. Thus, I believe that there are few
organizations whose exit strategy goes according to plan otherwise the business face major
issues in initiating the functions in the market (Wang, Butler, & Ren 2013).
Thus, in the limelight of above mentioned events, the fact should be noted that the above
mentioned report evaluated reflection of the structure of growth of an organization. The above
mentioned report evaluated growing pain of the companies present in the market and the ways in
which organizational structure helps the business in securing their position by eliminating the
challenges. Further benefits and drawbacks of exit strategy have also been discussed in the paper.

Entrepreneurial Growth 5
References
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innovation in user communities. Organization Science, 23(4), 988-1007.
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Faraj, S., Jarvenpaa, S., & Majchrzak, A. (2011). Knowledge collaboration in online
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Fisher, G. (2018). Online communities and firm advantages. Academy of Management Journal,
advance online publication.
Flamholtz, E.G. & Randle, Y. (2007). Growing pains: transitioning from an entrepreneurship to a
professionally managed firm, 4th Edition, pp. 48-70. San Francisco: Jossey-Bass.
Hofer, C. W., & Charan, R. (1984). The Transition to Professional Management: Mission
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Jeppesen, L. B., & Frederiksen, L. (2006). Why do users contribute to firm-hosted user
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Massa, F. G. (2016). Guardians of the internet: Building and sustaining the anonymous online
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Roberts, M.J. (1999). Managing transitions in the growing enterprise. In W.A. Sahlman &
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Wang, X., Butler, B. S., & Ren, Y. (2013). The impact of membership overlap on growth: An
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doi:10.1287/orsc.1120.0756.

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Yeo, Y., & Park, C. (2018). Managing Growing Pains for the Sustainable Growth of
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