Friday, April 14, 2006

Why would a big business act small? -

I am only looking for a couple reasons why a big business would act small.

Often times a large business creates divisions to be able to address certain issues that are problematic with one big entity. One reason is customer service. If a company has multiple locations but all the commands have to go through the big cheese or one central office. There will be a lot of work at one location creating a backlog. This slows down the activity and also slows down response to customers. Let s say a client wants something done but the business has to get approval from the manager first. The client would have to wait. The manager will have hundreds of approvals to go through and he would not know the full needs of each client. It simplifies marketing strategies. Different divisions of a company act like small businesses and have control of marketing within their area. If you have a national advertisment for one product that is targeted at one type of audience, you will be missing a lot of customers whom are not part of that audience. But if you have a town that has a fair each year, the branch in that town can sponsor the fair and use that as a more affective marketing strategy (direct marketing).Smaller businesses or divisions have less overhead as compared to one huge conglomerate. The division will be able to better manage their products or services with specific action to meet the requirements of that division. Minimal / consice information is sent between divisions and the headquarters simplifying communications, documentation, logistics, legalities and financial processes. There are a few more reasons but generally speaking, small business is the best way to interact with customers / clients while big business is a more efficient way to make money. When both are put together it s the best of both worlds. Hope this helps you out. Good luck

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