Since we were little, we admire the big ones. We learn to speak, face life’s difficulties and relate to the world, always keeping an eye on them Nepal Email Address . But we are here to talk about marketing for large companies. And what does this have to do.
The same thing happens in marketing . Small businesses analyze large companies to understand how they succeeded, which paths they took, which strategies worked (and which failed). But, just like in personal life, at times the situation is reversed: it is the small who teach the big.
Although it is the objective of most small businesses, the growth of a company can leave some lessons behind : the boldness of the first steps, the creativity to overcome the lack of resources, the proximity to customers.
However, these characteristics, so essential to leverage a business, can also help market giants. In this article, you’ll better understand these losses that happen when companies grow and what lessons they can learn from small businesses.
Evolution and revolution: the challenges of large companies
Every entrepreneur wants to see their business grow. Some want to be the city’s success story, others want to conquer the national market, others still dream of being multinationals. Ambitions can vary, but the dream of anyone who opens a business is to be big!
But the way there is not just flowers. Growing means selling more, increasing revenue, having more customers, opening new units and all of this is a sign of success! But growing up also means going through some crises.
At the beginning of the text, we made an analogy between children and adults. As a person grows, there are many challenges that he goes through: he has to face the first day of school, adolescence, career choice and several other situations. There is no evolution without difficulty and effort.
So, too, with companies. Larry Greiner wrote an article for the Harvard Business Review in 1972 describing the stages of a company’s evolution and revolution , that is, of growth and crisis.
Creativity vs. Leadership
It happens at the beginning, when the entrepreneur creates his product and market. At this stage, communication between the team is informal and salaries are modest, although the dedication is extraordinary.
Therefore, a leadership crisis arises: someone needs to lead the company to face the first management challenges.
Direction vs. Autonomy
It is when the company already has a leadership that guides the business. The organizational structure and internal communication are formalized, with the definition of processes and controls.
After a period of stability, the company faces a crisis of autonomy: the manager is no longer enough to manage the company , so it is necessary to delegate responsibilities.
Delegation vs. Control
Now growth happens through delegation. The company decentralizes management and distributes responsibilities, tasks and roles in a hierarchical structure.
Thus, a crisis of control arises: a decentralized management requires independence, at the same time it makes communication more distant and reduces the control of the company’s management .
Coordination vs. Bureaucracy
To overcome the loss of control, the company adopts coordination efforts, List Provider with highly standardized procedures in all its processes.
Some functions are again centralized, while operational decisions are decentralized. However, management’s lack of trust in collaborators and structure barriers generate a bureaucratic crisis.