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As it goes, the overall productivity of a firm increases as the firm expands. A business also enjoys the benefits of economies of scale, as the scale of operation increases. However, it goes without saying that sometimes a firm reaches a point where productivity starts declining. This happens mainly because beyond this point, control and coordination of various departments of a business become difficult. As business activities increase, the management of a business may find it hard to keep track of every single transaction especially where measures have not been taken to install quality operating systems. As a company grows, decision making may also take unnecessary long and may be less effective due to bureaucracy. I don't need to state, delay in decision making means loss of business opportunities. This then calls for effective and efficient management control systems. A good control system, drafted at the beginning of each period, will enable the fulfillment an organization's objectives. Control policies and practices should be used to check the on-going activities and determine any deviation from the expected. Controls will help provide a feedback to the management which in turn assists in making future informed decisions. A company will also need to employ qualified personal to promote division of labor and specialization as it expands. This enables a firm to create more branches in order to handle increase in demand of their products or services. Strategic management and planning is therefore vital if any business unit is to be able to handle properly its expansion and combat any offsets that may arise. All in all proper management systems will in future go a long way in enabling sound business operations. Stephen is an business management expert. He researches and studies on big and small business strategies . (Website-) Business Management Strategies for efficient business operations.
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business operations, control systems, decision making, strategic management, productivity, management, economy, business management, feedback, organization, dec,
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