Bureaucracy tends to function like a machine with many cogs and gears. This mechanized business approach functions well in predictable environments. However, in today's rapidly changing business world, bureaucracy may prevent big companies from seizing the moment. Several management layers and slow procedures prevents big companies from quickly adapting to volatile situations, combating sudden competitive threats and capitalizing on new opportunities that arise.
Big companies therefore can benefit from the small – medium sized business approach.
A small – medium sized business is, by nature, lean and agile. Having fewer layers of management makes decision times much quicker. The pace of a small company is often very fast. Flexibility, adaptability and speed is frequently advantageous in getting new products or services to market.
Big business would be far more effective if it were to maximise the entrepreneurial spirit of its staff and design a corporate structure to provide the greatest number of employees direct contact with their marketplace, whilst minimizing system-wide bureaucratic procedures.
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