Photo AI
Assess the extent to which the problems of rapid growth may have been managed by Tended Ltd. - Edexcel - A-Level Business - Question 1 - 2022 - Paper 2
Question 1
Assess the extent to which the problems of rapid growth may have been managed by Tended Ltd.
Worked Solution & Example Answer:Assess the extent to which the problems of rapid growth may have been managed by Tended Ltd. - Edexcel - A-Level Business - Question 1 - 2022 - Paper 2
Step 1
Knowledge of problems of rapid growth
Answer
The rapid growth of Tended Ltd has led to several problems, including dis economies of scale, communication issues, and difficulties managing an expanding workforce. As the company expanded from a team of 1 to 10 in just eight months, such challenges arose, affecting both operational efficiency and employee coordination.
Step 2
Ways in which the problems have been managed
Answer
Tended Ltd has taken proactive steps to manage its growth challenges:
-
Leadership and Team Cohesion: Good leadership has been essential in enabling employees to collaborate effectively, mitigating communication issues as they formed a cohesive unit.
-
Securing Additional Finance: The company addressed its overtrading issues by obtaining £50,000 from Enterprise Loans, allowing for the necessary resources to manage its growth and enhance operations.
-
Addressing Development Issues: Tended Ltd has also focused on addressing product development challenges, such as creating new smartwatches, by securing the essential funding required for new product lines.
Step 3
Counterbalance of issues
Answer
Despite the measures taken by Tended Ltd, several issues may still persist:
-
Ongoing Communication Challenges: Rapid expansion could continue to strain communication within the team, as integrating new employees requires time.
-
Financial Management Struggles: Even with additional funding, the company might face ongoing difficulties in managing finances effectively, which could lead to unforeseen issues down the line.
-
Development Challenges: Long-term development may be at risk as finding suitable suppliers for new products might delay production processes.
Step 4
Potential Judgement
Answer
In conclusion, while Tended Ltd has implemented several strategies to manage the challenges of rapid growth, the extent of their success may be limited. The young nature of CEO Leo Scott Smith, alongside potential inexperience in managing a larger workforce, could hinder their ability to navigate complex issues effectively. Thus, continuous assessment and adaptation will be crucial for the company's sustained success.