Four years ago, Chloe began working as a software designer for Pioneer Tech, a digital agency in Bristol. While she initially enjoyed the collaborative start-up culture, she is now actively applying for jobs elsewhere. She is frustrated by the lengthy administrative procedures required to get even minor software updates signed off.
Over the past 18 months, Pioneer Tech has doubled its workforce to over 300 employees. To manage this growth, senior executives have introduced strict weekly reporting templates and hierarchical approval layers. Chloe finds these administrative demands highly repetitive and feels her creative input is increasingly ignored by distant managers.
With reference to the extract above and your knowledge of economics, analyse why Chloe's employer might be experiencing diseconomies of scale.
