Tuesday, January 27, 2015

Company Growth Slows Down as Company Develops

There is a difference between growth and development. An animal can grow in size after it is born then it reaches puberty. The growth after birth is growth, but advancing to the stage of puberty is development because the organism is qualitatively and functionally different. The same case is with plants. A plant can start growing in size and creating more leaves which is a growth stage. Then it can start giving flowers and then seeds and fruit which are considered stages of development. When a plant transitions to a new stage of development its growth rate is reduced or stops completely.

The same can be said for companies as well. A company can start growing till it reaches a stage where it would develop. This stage would see the halting of slowing down of company growth but the company transitions to a more developed stage that is qualitatively different and has new functionality. The halting of the growth is not something bad, actually, the development into company with further functionality makes the company more able and can thus increase effectiveness and profit after that.