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

Case: Kiran Logistics, a startup, has reached steady revenue growth and its founder now wants to move from rapid expansion to a phase of consolidation. Which action best reflects stabilisation of a sustainable business after scaling up?

Standardising processes, building a professional management team and strengthening cash-flow and governance controls best reflects stabilisation. This phase makes the enlarged business durable and sustainable, whereas aggressive multi-state expansion, family-dominated control or cutting technology investment would undermine long-term stability.

  1. AStandardising processes, building a professional management team and strengthening cash-flow and governance controlsCorrect
  2. BDoubling the marketing budget to enter ten new states at once
  3. CReplacing the board with the founder's relatives to speed decisions
  4. DCutting all investment in technology to show higher short-term profit

Explanation

Stabilisation means making the scaled business durable through standard processes, capable management and financial and governance controls. Entering many states at once continues aggressive expansion, while family-only control and starving technology weaken sustainability.

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