According to Chapter 13, business success doesn't always scale. What is meant by this statement?
What will be an ideal response?
Scaling a business means increasing its size and pace of activity. Unfortunately, the very thing that makes a business initially successful often makes it difficult to grow or scale. For example, businesses that are based on providing high levels of individualized service often don't grow or scale well. This is because it's hard to continue to offer individualized service as a business grows. There is also a category of businesses that sell high-end or specialty products that earn high margins. These businesses typically sell their products where customers prioritize quality over price. These businesses can grow, but only at a measured pace. If they grow too quickly, they can lose the "exclusivity" they are trying to project or can damage their special appeal. For example, fashion clothing boutiques often limit the number of garments they sell in a certain size or color. Even though they know they could sell more of a particular tie or dress, they deliberately limit their sales so their customers don't see each other wearing identical items.
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What is a characteristic of a successful work team?
A. Team members operate in general agreement and avoid conflict. B. Team members remain in contact outside normal business hours. C. Team leadership is determined by executive-level managers. D. All team members share a commitment to a clearly defined purpose.
Under Armour's decision to add athletic shoes to its apparel line in 2006 is an example of a ________ strategy
A) market penetration B) market development C) downsizing D) diversification E) product development