In order to get a better idea of the negative consequences of business growth and impact of hierarchical organisational structure, students should read this article, "Rejuvenating Maxis and Celcom" and look at how some companies when they have grown to a large size will face difficulty especially in terms of working through the additional hierarchy. This often makes the business enterprise less responsive (and in other words, how business growth can undermine the agility of business operation in responding to the demand of the market environment and competitive pressure).
When an organisation grow in size effective coordination and internal communication can be difficult to achieve.
However, the problems may not necessary have resulted solely from organisational structure as they can also be due organisational leadership and organisational culture as well as politicking within the enterprise that may hinder productive decisions.
In order to keep the business enterprise afloat and satisfy the economic interest of the shareholders, the CEO may have to make tough decision to retrench workers in order to compress the organisational workforce, making it leaner and deal with the problem of bloated manpower.
Moreover, from a marketing perspective, the act of Celcom in introducing many different telco packages can have an adverse effects on its sales as customers get confused. Once customers are confused, they will most likely experience psychological stress and this will turn them away from the company products. As such, it is a good call for the new CEO of Celcom to streamlined its service package in the form of Xpac.
How is this news of Maxis and Celcom in hiring a CEO of foreign origin be relevant to A-Level studies? The idea is to understand how whenever a business grows to a large may later become its weaknesses and the organisational structure make the organisation more cumbersome to operate. Also, it is a necessary evil for enterprise to reduce its headcount especially when hiring is not properly monitored and controlled leading to a bloated workforce.
So after reading the article provided in the link, what other insights can you get that are relevant to your Business Studies?
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