- 10 Marks
Question
evelopment in response to the challenges of growth and changes in both its internal and external environments. The company is currently under pressure to continue evolving.
i) Identify and describe the first two phases of growth applicable to BOGML based on Greiner’s Growth Model. In your explanation, include the type of crisis the company faced at each phase.
ii) The board has proposed appointing Regional Managers who will be responsible for the sales performance of the company’s filling and gas stations in their regions. If this proposal is implemented, it will move the company to the next phase in Greiner’s Growth Model. Identify and explain what this next phase is, and describe the potential crisis that may arise at this stage.
Answer
i) First Two Phases of Growth in Greiner’s Growth Model Applicable to BOGML:
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Phase 1: Growth through Creativity
- In the early years of BOGML, the company was largely driven by the personal efforts and creativity of its founder, Dr. Ayimadu Baffour. He made all major decisions, managed finances manually, and assigned roles informally to employees without clear job descriptions.
- Crisis at this Stage: Leadership Crisis – As the company grew, the need for a more structured organization arose, requiring a shift from the founder’s direct management style to a more defined leadership structure.
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Phase 2: Growth through Direction
- In response to the Leadership Crisis, BOGML established functional departments with formal roles such as Head of Operations, Head of Finance, and Head of Human Resources. The company attempted to improve efficiency by delegating certain operational responsibilities.
- Crisis at this Stage: Autonomy Crisis – As the company expanded, the centralized decision-making structure led to operational inefficiencies, causing the Head of Operations to complain about excessive workload. Employees were also dissatisfied with limited decision-making authority.
ii) Next Phase in Greiner’s Growth Model & Potential Crisis:
- Phase 3: Growth through Delegation
- If the board implements the proposal to appoint Regional Managers, this will mark a shift towards decentralizing decision-making, allowing regional heads to take ownership of their market areas and easing the burden on the Head of Operations.
- Crisis at this Stage: Control Crisis – As decision-making is pushed to regional managers, the company may struggle with maintaining strategic alignment and ensuring consistency across different regions. The MD’s reluctance to lose control could also lead to conflicts in authority and decision-making.
- Topic: Competitive Advantage
- Series: Nov 2024
- Uploader: Salamat Hamid