Grayson owns a local smoothie store. His business started small, but over the years, word of mouth has spread, bringing more people in to try his delicious homemade smoothies. Since business is booming, Grayson decides to expand his business and open three additional stores in surrounding towns. What does growth like this require in terms of structure?
A) Growth requires flexibility, and thus, no structure.
B) Growth requires adopting a universal structure that works for all businesses.
C) Growth requires letting employees determine what the structure should be.
D) Growth requires developing a formal structure to function efficiently.
E) Growth requires developing a rigid structure that never undergoes changes.

Question

Quizplus · Accepted Answer

Growth requires organizing-the structuring of human, physical, and financial resources to achieve objectives in an effective and efficient manner. Growth necessitates hiring people who have specialized skills. With more people and greater specialization, the organization needs to develop a formal structure to function efficiently.

Grayson Owns a Local Smoothie Store