DEVELOPING MANAGEMENT PRACTICES IN A FAST-GROWING COMPANY: A CASE STUDY

Abstract

As a company grows, it encounters a range of challenges often referred to as “growth pains”. Nonetheless, there are ways for recognizing these challenges and find solution to overcome them. The purpose of this thesis was to study the management practices of a company that has grown exponential between 2020 – 2022. The research aimed to find out what impact growth of a small company can have on its management practices, how they can be managed and what are the central factors for a growth company´s success. The findings of the research are based on qualitative methodology including thematic interviews with the commissioning organization’s middle management and the researcher’s experiences and observations while working in the organization. The findings are interpreted and described with the help of growth and business management theories.

The theoretical framework of the research describes the nature of business growth by using a five stage business growth model and the challenges it might bring to a company’s management practices focusing on three management methods, (1) strategic management, (2) performance management and (3) organizational management, that has been discovered as the main management challenges of the case company. The final section of the thesis, presents the main conclusions and reflections of the research, and provides three development proposals that can help the company to tackle the identified challenges.

The study clearly shows that the big challenges for a growth company are to be able to focus on developing the core business and to avoid getting sidetracked by chasing every opportunity for additional growth. The research points out that a clear business strategy is a prerequisite for running a profitable business. Without the strategy it is difficult to develop operating processes, set and measure performance metrics and allocate resources effectively and profitably.