Question

. Take example of Zomato or OYO rooms. Is it possible for a firm to grow too fast? Do all firms have the potential to be aggressive-growth firms. In growing fast, what are the potential downsides?  

Answer 1

Yes it is possible for a firm to grow too fast but we have to take some points into consideration for rapid growth.

I.e we must have to generate lead very fast.we have to do collection very fast .for rapid growth hiring and building a great team is essential.we have to do product fullfillment .Lead conversion is also important .we must have intelligent control set up like visual control procedure ,procedural control ,embedded control etc.

creation of new channel and constantly innovation is requried for rapid growth.

Yes ,all firms have the potential to be aggressive growth firm

When there is aggressive growth then it enable company to reach more customer ,encourage more sales and put money back in business.

But it have few problems or downsides of rapid growth

We are not able to meet the demand of new customer.employess motivation is goes down.cash flow visibility is losing sight.we can loose track of finances.our money can be blocked.there will be cash flow mistakes which can generate confusion.there may be overvaluation of sales.hiring of wrong people can also affect firm.