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Growth Strategy
A strategy basedon investing in companies and sectors which are growing faster than their peers. The benefits are usually in the form of capital gains rather than dividends. Strategy aimed at winning larger market share, even at the expense of short-term earnings.
New demographic market - Selling to a different & Contents mall developed by Title Content demographic group. Guild Design Inc.
ThemeGallery is an a Design Digital New product use - Selling existing product, & Contents mall developed by which have a new use, to new groups of Titlemay Content Guild Design Inc. buyers.
Related Diversification
Opportunity for growth arise from:
1
Backward integration a step back into value added chain toward the raw material.
2
Forward Integration a step forward in value added chain toward the customers.
3
Horizontal integration occurs at the same level of the value added chain but involves a different, complementary, value added chain.
A value-added chain captures the step it takes to develop raw materials into a product and get it into the hands of the customer. Value is added at every stage of the chain. For value-added, each firms make a profit.
Growth Strategies
Product Development
Existing
Penetration
Market
New
Product
Economy
Firm
Entrepreneur
Managerial Pressures
1. Pressures on Existing Financial Resources 3. Pressure on management of employees
Managerial Pressures
Managerial Pressures
1. Pressures on Existing Financial Resources Growth need cash Firms own resources become stretched thin More risks in company
2. Pressures on human resources Growth is fuelled by employees Employee turnover Negative impact on firms corporate cultures Problems of employee morale, employee burn out, and an increase in employee turnover.
Financial Control
Managing Inventory
Managing Fixed Assets
Financial Control
Taxes
Record Keeping
Decisions regarding the proportion of permanent and part time employees should be made; involves several trade-offs.
Establish Team Spirit Communicate with Employees Provide Feedback Delegate Responsibility to others Provide Continuous training for employees
Increased Productivity
Effectiveness
Principle
Prioritized planning
Analysis
Reanalysis
2.
3.
5.
6.
Professional Management
Low
Unused Potential for Actual Growth of the Firm Growth Little Potential for Firm Growth
No
Constrained Growth