[Writer’s Name]
Moving from a sole trader to a large company there are a number of advantages businesses enjoy. Large organizations are better recognized in the market place and consumers are able to recognize the brand from amongst the multiple brands available out there. As most companies start off as small companies they are able to build a brand identity along with a loyal customer base. As companies grow in size they even benefit from economies of scale across departments. These economies reduce the unit cost of that function which gives them an edge over smaller firms and allows large companies to reduce their prices in the market place. Furthermore, larger firms are able to attract a better pool of talent and specialized workers for each department this allows them to have a more diversified workforce and more specialized work units. However, these advantages do not come without its drawbacks. Large companies can act as monopolies and exploit its customers. This exploitation of customers can also be caused by producing products cheaply and undertaking cheap production methods which may harm the quality of the product which in turn affects customers. As the company grows in size they are subject to more laws and regulations which increase the complexities the organization has to undergo. (Suttle 2013)
Heterogeneity and new product developments groups have become rare in today’s fast paced markets. Heterogeneous groups allow for specific goals and targets to be achieved by every department or group which leaves them responsible for their actions in case any hiccup arises. Moreover, heterogeneity allows for every department to be extensively well-versed in their area of expertise as this is their core concern. However, this tunnel-view limits the departments to think in terms of the organization. There is an emphasis over departmental goals which sideline the organizational goals. Heterogeneity is also unproductive in competitive markets because the time taken between idea generation and product development might be too long.
Collaboration and new product development is a concept many firms are now employing. This concept allows for various stages of the product development process to take place simultaneously; hence, the time taken between idea generation and product development is reduce and the product enters the market before it too late. Every team is going to be responsible for their part of the work but the main focus would be on achieving the end result rather than departmental or functional objective. However, collaboration could lead to many employees being unsure of what their responsibility is. It could also lead to a replication of tasks which means wastage of resources. (Annacchino 2011)
Works Cited
Suttle, Rick. "The Advantages of a Large Business." Small Business. N.p., n.d. Web. 17 Dec. 2013. <http://smallbusiness.chron.com/advantages-large-business-21007.html>.
Annacchino, Marc. The Pursuit of New Product Development: The Business Development Process. -: Butterworth-Heinemann, 2011. Print.
