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Vaule Chain Analysis

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Vaule Chain Analysis
A) The five stages of organizational growth are as follows: 1) Creativity/ Leadership

The first stage of organizational growth is called creativity. In the beginning stage there are very few numbers of people in the company. Due to least number of people each and every members knows each other and shares their knowledge, experience and information’s on what they know. Appropriate topics are discussed thoroughly within the organization to develop each other. This is the usual creative start up culture. Brainstorming is very much useful in small group of people. As the organization grows, it gets very hard to do things in mutual understanding. They have difficulty to differentiate between important and unimportant issue because there are very few or number organizational structure that allows distributing work to certain person. The company itself needs a strong person in charge who can hold the team together and find an appropriate system and structure.

This stage is conquered by the founders of the company, and the main thing is to create both the product and the market. These initiators are usually technically or entrepreneurial oriented and they dislike management activities. They are entirely involved in making and selling new products. But as the organization grows, management problems occur that cannot be handled through informal communication and dedication. Thus the founders find themselves burden with the unwanted management responsibilities and conflicts between the leaders grow more intense. In the beginning stage there are very few numbers of people in the company. | | 2) Direction/ Autonomy
This is the stage of first revolutionary period in which direction the company will go and what will be the result in future. In this stage the crisis of leadership occurs, who is going to direct the organization, redesign and strengthen the company. There will be a confusion that who is going to solve the managerial problems and tackle the

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