Professional Documents
Culture Documents
noormuhammad@giki.edu.pk
1.
Is it an increase in:
1.
Turnover/sales?
2.
Profits?
3.
Numbers employed?
4.
Return to investors?
5.
Global expansion?
Drivers
Type
1.
Lifestyle
1.
2.
Small Profitable
3.
3.
High Growth
5.
2.
4.
6.
Independence, autonomy
Comfortable living
Cash flow and profits
Autonomy and control
Sales and profit growth
Attract venture capital
1.
2.
3.
4.
5.
6.
7.
Managerial objective
Product/service development
Expanding market
Economies of scale
Diversification
Type of industry
Strategic objective
Stage 1
Existence
Stage 2
Survival
Stage 3
Stage 4
Growth
Consolidation
Stage 5
Resource
Maturity
Large
Small
Young
Age of organisation
Mature
Measure of growth
(e.g. sales)
Phase 4
Maturity
Decline
Phase 3
Growth
Slow
decline
Phase 2
Development
Decline
Phase 1
Concept/test
terminate
12
24
36
48
60
Researcher
Phases/Stages
Steinmetz (1969)
No empirical evidence
A successful small firm survives four
stages of growth and three critical
phases of growth, occurring at the end of
stages 1, 2 and 3.
Churchill and
Lewis (1983)
5 growth stages
(1) Existence
(2) Survival
(3) Success-disengagement;
success-growth
(4) Take-off
(5) Resource maturity
No empirical evidence
Managers of successful small firms were
consulted for the revision of the
perceived small firm growth model
(Greiner 1972). The proposed business
development framework delineates five
evolutionary
stages
of
growth
characterised by an index of size and
diversity-complexity
in
terms
of
managerial challenge.
Researcher
Vozikis (1984)
Phases/Stages
3 stages of growth
(1) Start-up
(2) Early growth
(3) Later growth
Synthetic 5 stages of
Growth
(1) Inception
(2) Survival
(3) Growth
(4) Expansion
(5) Maturity
No empirical test
Their proposed synthetic model draws on previous researchers
(extensively on the work of Churchill and Lewis, 1983) of small
business development, and is a diagnostic tool of a firms
position and growth strategies, to achieve the development of
small firms along their life cycle.
1. Phase 1 - Creativity
Crisis of Leadership
Phase 2 - Direction
Crisis of Autonomy
Phase 3 Delegation
Crisis of Control
Phase 4 Co-ordination
Phase 5 Collaboration
Phase 6 - Alliances
The differences in the administrative structures of the very small and the
very large firms are so great that in many ways it is hard to see that the two
are of the same genuswe cannot define a caterpillar and use the same
definition for a butterfly (Penrose, 1959, p.19)
The Entrepreneur
The Firm
The Strategy
Motivation
Legal status
External equity
Education
Market positioning
Managerial experience
Location
New product
introduction
Teams
Size
Age
Market/industry
sector
Ownership
Management
recruitment
External Growth
Strategies
mergers and
acquisitions
New Product
Development
Other
product-related
strategies
Firm
Growth
Licensing
Strategic alliances
and joint ventures
International
expansion
Franchising
Mission
Goals
Objectives
1.
2.
3.
4.
5.
Timmons
1.
2.
3.
4.
5.
1.
Management capability
2.
Attitude to risk
3.
Lack of enthusiasm
1.
Bennett, R. (2008). SME policy in Britain since the 1990s: what have we learnt?
Environment and Planning C: Government and Policy, 26, 375-397.
2.
Berger, A. N. and Udell, G. F. (1998) The economics of small business finance: The roles
of private equity and debt markets in the financial growth cycle, Journal of Banking and
Finance, Vol. 22, pp. 613-673.
3.
4.
Curran, J. and Blackburn, R. A. (2001) Researching the Small Enterprise. Sage, London.
5.
Deakins, D., and Freel, M. (2009) Entrepreneurship and Small Firms, 5th edition.
McGraw-Hill.
6.
Explain how your new venture can apply the marketing mix to gain
competitive advantage and strategic positioning.
Time: 15 Minutes
Total Marks: 10