The degree of growth and the rate at which a new venture grows are dependent on both the market and the management strategy. Market factors affect a firm’s ability to grow. a. The Size, Characteristics, and the Buying Power of the Target Market If the niche market that the company […]
Growth
THE CHALLENGE OF ATTAINING SUSTAINABLE GROWTH The sustainable growth rate (SGR) of a firm is the maximum rate of growth in sales that can be achieved, given the firm’s profitability, asset utilization, and desired dividend payout and debt (financial leverage) ratios. Variables typically include the net profit margin on new […]
COMMON OBSTACLES TO BUSINESS GROWTH IN RURAL AREAS Rural businesses are those firms that are established and operate in rural settings, far from the metropolitan areas that have traditionally been the site of most non-agricultural business enterprises. Most businesses continue to conduct business in large cities or thriving suburbs, but […]
WAYS IN WHICH ORGANIZATIONS ACHIEVE GROWTH Growth is something for which most companies, large or small, strive. Small firms want to get big, big firms want to get bigger. Indeed, companies have to grow if for no other reason than to accommodate the increased expenses that develop over the years. […]
DIVERSIFICATION GROWTH STRATEGIES – HOW TO GROW OUTSIDE THE INDUSTRY When entrepreneurs expand their businesses by investing in or acquiring products or businesses outside their core competencies and industries, they are employing Diversification Growth Strategy. Generally, but not always, this strategy is used when the entrepreneur has exhausted all growth […]
INTEGRATIVE BUSINESS GROWTH STRATEGIES – HOW TO GROW WITHIN THE INDUSTRY There are many opportunities for entrepreneurs to pursue integrative growth strategies – to grow their venture through acquisition. The acquisition is in many respects less about the financial ability of the entrepreneur to purchase another company and more about […]
HOW MANAGEMENT FACTORS CAN AFFECT BUSINESS GROWTH The degree of growth and the rate at which a new venture grows is apart from marketing also dependent on the management strategy. Management factors that affect a firm’s ability to grow: The Inertia of Success When a new venture has survived and […]
HOW MARKET FACTORS CAN AFFECT BUSINESS GROWTH The degree of growth and the rate at which a new venture grows is dependent on both the market and the management strategy. Market factors affect a firm’s ability to grow. The Size, Characteristics, and the Buying Power of the Target Market […]
WHEN A VENTURE NEEDS TO GROW OR NOT TO GROW Some entrepreneurs make the conscious choice to control growth even In the face of extraordinary market demand. This is not to say that growth is slowed to single digits. Instead, the entrepreneur may choose to maintain a stable growth rate […]
Leading marketing practices of fast-growth firms Deliver products and services that are perceived as high quality for expanding segments. Cultivate pacesetting new products and services that stand out in the market as the best breed. iii. Deliver product and service benefits that demand average or higher market pricing. Generate […]
