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Business Organisation and Policy - Essay Example

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From the year of 1990 those, i.e. the big companies, got into a bit trouble. Reasons were many. The emotions were in favour of companies who were entrepreneurial start-ups. Then, again, situation changed; size started to matter a lot. This time…
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Business Organisation and Policy
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Business Organisation and Policy

Download file to see previous pages... Where as, if the country has a government, which prefers large companies and even sometimes the government invests a lot to pull the sick companies, definitely the sentiments would be in favour of size.
In a condition of economical boom, most of the people seek their entrepreneurial dreams to come true. The venture capitalists are there to help them out in this. Situations become gloomy in economic downturn. Venture capital firms would be in no position to help them out. In such a situation, big companies can sustain for long than the small ones. The situation can be seen from other point of view also. For an example, an industry, whose demand has decreased drastically; a large company, being in that industry, would get hit badly than the smaller ones. The smaller ones would incur less cost than the bigger ones. Even the economic downturn can be encouraging for the entrepreneurial business. In such a scenario employment opportunities would get squeezed. Many people would be inspired to have their own business this time. Even in recession time, companies prefer to squeeze themselves; by cutting on their employee size or selling off some of the non profitable divisions of a conglomerate.
Sometimes some social reasons can encourage a company to be whether small entrepreneurial or of larger size. Social pressure can play an important role to create emotions in favour of the entrepreneurship.
Technology has encouraged having smaller entrepreneurial companies; but taking the help from the bigger ones. The small companies grow using the servers of the big companies; taking the help from their research and development. Sometimes large companies can have problems in communicating between themselves; the centred management information system might not be efficient enough to carry on the co-ordination within the business systems; that time the ...Download file to see next pagesRead More
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