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It is necessary to teach the no growth business approach in business schools

Business schools have a responsibility to education the modern businessman or woman in all facets of the subject. That includes many of the different philosophies on growing your business. Most businesses today realize that they have to grow in order to survive. This is especially true for larger organizations such as Wal-Mart, GE, and Johnson & Johnson (Daft, 2008). However, this strategy may not translate into the small business world. Many small business owners started their organization to have customizable service to their customer base. This fact has led to small business holding many advantages over larger firms who offer the same service (Daft, 2008). Smaller firms many times are able to ride the always-shifting market conditions with a little more confidence. They know their customers choose them for their quality service and will continue to use them through most economic conditions. Further, smaller organizations have “significant advantages in terms of quick reaction to changing customer needs or shifting environmental and market conditions” (Daft, 2008, p. 337) Likewise, small organizations also “enjoy greater employee commitment” as they feel they are an important part of the organization (Daft 2008, p. 337). The aspect of growth cuts into this ability to serve the customer with this kind of quality and customization (Daft, 2008). Customers begin to feel the cookie cutter customer service and employees begin to feel they are not as much a part of the organization as they once had been. Based on studies of primitive societies, religious sects, military organizations, and some businesses, anthropologist Robin Dunbar proposed that 150 is the optimum size for any group trying to achieve a goal (Daft, 2008, p. 338). Dunbar says beyond that size, the group's effectiveness wanes because of too many rules, procedures, and red tape that slows things down and saps group morale, enthusiasm, and commitment (Daft, 2008, p. 308). So, while growth does offer the added profit potential it does take away from some crucial aspects of business. It falls on the owners of the organization to decide whether or not they want to grow their business and maybe their profits, or if they want to stay small and be content at their current level.

Because of the reasons previously stated, I do believe it is necessary to teach the no growth business approach. Business schools have a responsibility to educate their students on all viable business options, and a no growth philosophy is most certainly one of them. So, in order to be fully prepared for the business world they are entering, it is imperative that business students learn about all aspects of business; including philosophies such as no growth.

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