When you talk about functional structure, it entails a variety of activities such as supervision, coordination and task allocation. There are a number of common problems that businesses face when they begin to grow. A drop in sales, incompetent arising from both the managers and other employees and new levels of competitions characterize the major growth problems. Also, good customer service disintegrates when business growth takes effect. Moreover, the likelihood of communication hitches and breakdown increases drastically.These organizational structures are chosen depending on a various factors like; geographic dispersion, different products and services offered by the organization.
In many times, small businesses do require additional funding. Finding sufficient capital for any further expansion can be hectic keeping in mind the radical changes that has just happened to the entrepreneur. This is because of the small capital base which cannot be considered by a number of financial institutions for loan purposes. In this case, businesses are advised to revise their business plan on regular basis and update their marketing strategies so as to access funding in a considerably cheaper means. Some strategic changes arise as a result of firm expansion and that will affect business enterprises and the level of profitability in the future.
Operational impact on their existing businesses may lose more than what they have projected in their quest of becoming a player in the global market. A continuous expansion of the consumer base is needed. Also reliable statistical data can supplement or even to a greater extent replace a field trip. If businesses are flooded with clients, the employees will most likely to struggle to increase the demand for their goods. This in turn will see a noticeable drop in the quality of products produced. Moreover, enterprises which are expanding have an obligation of investing in a more complex and advanced communication systems so has to provide sufficient reinforcement to a number of entities.
Work cited
Jones, G. Organizational theory, design, and change (6th ed.) Upper Saddle River, NJ: Prentice Hall. 2010. Print.
Johannes W.Hell, Michale D. Ehlers. Structural and functional organization of the synapse. 2008. Print.
Michael A. Arbib. Neutral Organization: Structure, Function, and Dynamics. 1998. Print.
