business growth/...........

2. GROUP

3. Business Growth

4. Introduction!

5. Growing a business
requires research and
planning.

6. Definition
To Business
growth
Any firm whose business
generates significant
positive cash flows or
earnings, which increase
at significantly faster
rates than the overall
economy.

7. Ways of Business Growth

9. Management structure

10. Financing Growth
Growth Finance is a company’s use of debt, equity and hybrid
financing techniques to achieve business expansion in a cost-effective
manner.

11. Internal source
Current Assets
Retained Earnings
Fixed Assets
Cashflow
Low profit
Over investment
Seasonal demand
External source
Issuing equities
&bounds
Long term obligation
Short term debts
Overtrading
High taxation
Over-investment in fixed
assets

13. Internal growth can come from:
Innovation – new product development, new
processes, new systems, etc. which can improve the
efficiency
of the firm
Competitive Advantage –
the means by which a firm
is able to make itself stand out from its rivals –
innovation could be one source of competitive advantage
Others might include:
After sales service
Quality
Price

15. Takeovers
One firm buying/securing a controlling interest in another,
the taken over firm may lose its identity
Example
L'Oreal and the body shop
Mergers
The amalgamation of two or more firms
Each firm may retain some degree.
Example.
Metro and Macro