Reference no: EM133048088

Two years ago, your best friend, along with four other original employees, created a company based on a new design and manufacturing process for a basic sensor that can track several vital health statistics. The founding team strongly believes that this sensor has the potential to help individuals with certain health challenges to live better lives. The company's unique design and process for making the sensor cuts costs by roughly ½ compared with the closest competitor. Your friend's company has seen incredible growth in sales and product demand since starting the company. Up to this point, there has been relatively little formal structure in the company and the 5 founders have been deeply involved with all aspects of the business. However, they are beginning to be overwhelmed with all that needs to be done, despite the fact that they have hired 10 additional people in the last year. The company has attracted interest from investors but your friend is unsure about whether the founding team should give up any control at this point. Faced with the challenge of hiring additional staff, managing the various business functions, supply chain challenges, increased regulatory oversight and building the brand, your colleague has asked you for advice on managing the company's growth. Because you are currently enrolled in BADM 509, you are excited to apply some of the theory and principles that you've learned in the class to help your good friend. Please respond to each of the following prompts:

Thinking of the life cycle model of organizations, what stage of the life cycle is your friend's company most likely in? What advice would you give about the likely crises that your friend's firm needs to overcome soon in order to continue to survive?

In module 1 we learned about organizational purpose and then we saw the importance of purpose again in the J. Peterman case. What advice would you give to your friend about purpose in a growing company based on what we learned from mistakes made by J. Peterman?

What advice would you give to your friend regarding the use of organic vs. mechanistic structures as the organization grows? What are some potential challenges to watch out for if your friend follows your advice?