Essay Question #1
- Reasons Small Firms Have Prospered rather than large firms over the last 50 years in Western Countries
Considering Mason (2021) report, it had found that prosperity of organisation is dependent on age and size. The study found that in the last 50 years, 85% of the small firms have prospered as opposed to the large firms. Basically, from a personal experience, for the small organisations, they leverage on a higher competitive advantage over big companies. In specific, the reasons include;
Personal edge– For the small businesses, they tend to possess a direct relationship with their customers which is dependent on how products and services are offered by the organisation. The face-to-face relationship with customers for the small firms endear them as opposed to the large firms.
Responsive to changing conditions– For the small firms, they are noted to be more nimble compared to large businesses with an improved capacity of adapting to market conditions changes. Since a small firm is closer to their clients, this represent a better position for sourcing feedback and noting changing preferences.
Prompt risk taking– In regard to the small firms, they have the potential of taking opportunities which is otherwise a challenge for large firms. Specifically, they are engaged in testing new products in the smaller markets with less investment, variables observations and noting all obstacles.
- Saudi Arabia Large Firms become Entrepreneurial
Using the definition in Camisón-Haba et al. (2019), large firms becoming entrepreneurial entail the capacity for organising, operating and assuming the risk for a business venture. The large firms in Saudi Arabia (KSA) can also become entrepreneurial. The rationale for this would include driving and fuelling for innovativeness, demand for top talents and necessity for leveraging on competitive objectives. Further…
Please click the icon below to receive this assessment in full