eli5: What does it mean when they say “this company grew too big too quickly”?
In: Economics
Likely to mean that the management or owners of the company were unprepared to deal with the complexities that growth brought about. Small companies generally work with a high degree of informal systems and procedures. High growth usually requires hiring more people very quickly. The influx of a lot of new employees means the informal system doesn’t work any more causing loss of efficiency, waste or customer issues. All companies also rely on external suppliers and high growth can outstrip supplier’s capacity.
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