EXTERNAL GROWTH STRATEGIES How to Boost Your Business. How to Attract More Customers. How to Collect More Revenue.

1. EXTERNAL GROWTH STRATEGIES

3. ENTERPRENEURSHIP
GROUP MEMBERS
ABUBAKR CHEEMA G1F16BSCS0076
ZAIN KHALID G1F16BSCS0143
ABDUL MOIZ G1F16BSCS0045
ZEESHAN GUJJRI G1F16BSCS0054
SUBMITTED TO: PROF. AYESHA SAEED

4. EXTERNAL GROWTH STRATEGIES

5. Growth Strategies ?
• How to Boost Your Business.
• How to Attract More Customers.
• How to Collect More Revenue.

16. Types of Growth Strategies.
 External Growth Strategies.
 Internal Growth Strategies.

17. What is External Growth?
 Increase Their sales through integration with others.
 buying other companies or forming a business
relationship with them.

18. Increase Their sales through integration with others
• Mergers & Acquisition
(combine together to form one)
• Take Overs
• Strategic Alliances
(PCIC & Meezan Bank)

20. Mergers and acquisitions
(M&A)
Mergers:
A new business entity is created when two or more
businesses merge, bringing the two separate
operations together, and creating one new business.
The two previously separate operations combine into
one, as do customer bases, management teams and
employees. It’s important to assess and sort
everyone into a combined workforce that’s smaller
and more efficient than the sum of the old
businesses.

21. Benefits of a Merger:
In terms of mergers, the benefit of combining one business with another is the
opportunity to grow each business’ sales immediately based on the addition of the
other business.
The new ‘combination business’ should also have the potential to become more
profitable than the two businesses were operating independently, based on an
increase in sales and the opportunity to reduce total costs by combining
operational functions and creating operational efficiencies.

22. Acquisitions:
In a business acquisition, one business buys and owns the other
through a formal sale. Through this sale, the acquired business
becomes a subsidiary of the other business, giving it total control
over both the profits and operations of the acquired business.
The decision to combine must make financial sense for both
businesses, and the new entity must be greater than the sum of the
old businesses were separately.

23. Licensing:
License your product
Growth Strategy -License A Product If you have a branded product or service
product, this can be a low-cost, effective way to achieve business growth.
Through licensing, you can receive upfront cash and royalties from the
continued sales or use of your product. Licensing is low cost compared to
starting your own business to produce and sell your brand or product, and it
also minimizes your risk.
Finding a licensing partner
Start by researching companies that provide services or products similar to
yours. Before you set up a meeting or contact them though, find an attorney
who specialises in intellectual property rights. You need to minimize the risk
of losing control of your idea. The last thing you want is to pitch your idea to a
potential licensing partner, only to have them replicate your idea without you.

24. What are Strategic Alliances?
Strategic alliances are agreements between two or more independent
companies to cooperate in the manufacturing, development, or sale of
products and services or other business objectives.
For example, in a strategic alliance, Company A and Company B combine their
respective resources, capabilities, and core competencies to generate mutual
interests in designing, manufacturing, or distributing of goods or services.

25. Types of Strategic Alliances
There are three types of strategic alliances: Joint Venture, Equity
Strategic Alliance, and Non-equity Strategic Alliance.
1- Joint Venture:
A joint venture can be defined as an
alliance in which the parent companies
build and establish a new company.

26. •An equity strategic alliance is
formed when one company
purchases the certain
percentage of the equity of
the other company.
2- EQUITY ALLIANCE

27. Two or more businesses agree to
share resources and capabilities to
gain a competitive advantage
without forming a joint venture
and without an equity exchange.
3- Non-Equity Strategic Alliance

28. Advantages
•Reducing competition.
•Access to branded products
•Gaining access to new products.
•Gaining access to new markets.
•Access to technical expertise
•Access to an established brand name.
•Economies of scale.
Disadvantages
•Unsuitability of top management.
•Clash of corporate cultures.
•Operational problems.
•Increased business complexity.
•Loss of organizational flexibility.
•Antitrust effects.