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CMA Final · Entrepreneurship and Startup · Scalability, Scaling up and Stabilisation of Sustainable Business

A Pune-based packaged-snacks startup has grown revenue 4x in two years, but its gross margin has fallen from 38% to 29% and customer-support cost per order has doubled because the founders approve every vendor and pricing decision personally. Which action is most consistent with moving from rapid growth to a stabilised, sustainable scale-up?

Delegating routine decisions to trained managers and standardising processes with clear KPIs is correct. Scaling sustainably needs institutional systems rather than founder dependence, which restores margins and service costs. More funding, hiring freezes or category switches do not fix the underlying process and control weaknesses.

  1. ADelegate routine decisions to a trained middle-management layer and standardise processes with defined KPIsCorrect
  2. BRaise another funding round and double the marketing spend to outgrow the cost problem
  3. CFreeze all hiring and stop adding new vendors indefinitely
  4. DShift all operations to a new product category to reset the cost base

Explanation

Stabilisation requires building systems, delegation and measurable processes so that unit economics hold as volume grows. Simply raising money and marketing spend increases scale without fixing the margin and cost leakage. Freezing hiring or changing category does not address founder bottlenecks.

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