Growth and Retrenchment Kyle by https://padlet.com/q190003/jgb6l4mshkzrz5u7 en-us 2020-12-18 14:52:43 UTC 2020-12-18 16:08:11 UTC hello@padlet.com The Impact of Growth or Retrenchment on the Functional Areas of the Business q190003 https://padlet.com/q190003/jgb6l4mshkzrz5u7/wish/1031381462 2020-12-18 14:53:26 UTC https://padlet.com/q190003/jgb6l4mshkzrz5u7/wish/1031381462 Impact of Growth q190003 https://padlet.com/q190003/jgb6l4mshkzrz5u7/wish/1031383385 2020-12-18 14:53:57 UTC https://padlet.com/q190003/jgb6l4mshkzrz5u7/wish/1031383385 Finance q190003 https://padlet.com/q190003/jgb6l4mshkzrz5u7/wish/1031394069
  • Ensure enough capital is within the business in order to grow
  • External source of capital could be investors/stakeholders
  • Internal source could be retained profits
  • Managers must manage cash flow carefully otherwise cash flow problems will occur 
    • ]]>     2020-12-18 14:56:47 UTC https://padlet.com/q190003/jgb6l4mshkzrz5u7/wish/1031394069     Marketing q190003 https://padlet.com/q190003/jgb6l4mshkzrz5u7/wish/1031417771
  • Greater marketing skills can increase the demand in a market for a business to grow
  • Can need investment or change of use for funds
    • ]]>     2020-12-18 15:02:46 UTC https://padlet.com/q190003/jgb6l4mshkzrz5u7/wish/1031417771     Human Resources q190003 https://padlet.com/q190003/jgb6l4mshkzrz5u7/wish/1031436213
  • Growth can lead to positive behaviour for employees as new opportunities and responsibilities arise
  • Can, in short term seem like extra duties with no reward unless more staff are recruited
  • Training of new skills can be needed
  • Job descriptions and pay/reward structures may need to change
    • ]]>     2020-12-18 15:07:34 UTC https://padlet.com/q190003/jgb6l4mshkzrz5u7/wish/1031436213     Operations q190003 https://padlet.com/q190003/jgb6l4mshkzrz5u7/wish/1031460280
  • Improvement to capital utilisation with the cost of placing burdens on the business if resources are working to the maximum
  • Maximum levels will not be sustainable which means funds will need to increase 
  • Decision making for the extent in which changes in technology are needed
  • Economies of scale can be useful
    • ]]>     2020-12-18 15:12:48 UTC https://padlet.com/q190003/jgb6l4mshkzrz5u7/wish/1031460280     Impact of Retrenchment q190003 https://padlet.com/q190003/jgb6l4mshkzrz5u7/wish/1031474633 2020-12-18 15:16:12 UTC https://padlet.com/q190003/jgb6l4mshkzrz5u7/wish/1031474633 Finance q190003 https://padlet.com/q190003/jgb6l4mshkzrz5u7/wish/1031483481
  • Costs money in short term to pay for redundancy payments
  • Funds can increase from the sale of assets
  • Costs decrease long term due to delayering
    • ]]>     2020-12-18 15:18:24 UTC https://padlet.com/q190003/jgb6l4mshkzrz5u7/wish/1031483481     Human Resources q190003 https://padlet.com/q190003/jgb6l4mshkzrz5u7/wish/1031518077
  • Redundancies will be likely
  • Other opportunities may arise so employees can be redeployed 
    • ]]>     2020-12-18 15:26:24 UTC https://padlet.com/q190003/jgb6l4mshkzrz5u7/wish/1031518077     Marketing q190003 https://padlet.com/q190003/jgb6l4mshkzrz5u7/wish/1031532025
  • Activities likely to be more focused on the core business
  • Reallocation of the marketing mix to reach new objectives 
    • ]]>     2020-12-18 15:30:05 UTC https://padlet.com/q190003/jgb6l4mshkzrz5u7/wish/1031532025     Operations q190003 https://padlet.com/q190003/jgb6l4mshkzrz5u7/wish/1031541943
  • Scale reduced from retrenchment
  • Many cases of retrenchment are due to diseconomies of scale
  • Outsourcing may be required to facilitate operations
    • ]]>     2020-12-18 15:32:50 UTC https://padlet.com/q190003/jgb6l4mshkzrz5u7/wish/1031541943