Opal,a recent fashion design school graduate,has received praise for her clothing designs from her peers and friends on social networking sites; this has inspired her to set up a store where she can design and sell apparel.After experiencing some success with sales,she recruits two employees to handle customers at the store.However,she handles other day-to-day affairs herself,while continuing to design clothes.Which of the following is likely to be a pitfall of this organizational structure established by Opal?

Question

Quizplus · Accepted Answer

A likely pitfall of this organizational structure established by Opal is that once the firm starts growing and attracting more customers she is likely to feel overloaded. A simple structure generally is used by small firms with low organizational complexity. In such firms, the founders tend to make all the important strategic decisions and run the day-to-day operations. Typically, neither professional managers nor sophisticated systems are in place, which often leads to an overload for the founder and/or CEO when the firms experience growth.

Opal,a Recent Fashion Design School Graduate,has Received Praise for Her