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strategies for managing growth.pptx
- 1. 14-1 Strategies For Growth And Managing The Implications Of Growth
- 4. 14-4 Strategies Penetration- Growth By Selling More Of Existing Product To Existing Customers Market Development New Geographic Market New Demographic Market New Product Use Product Development- Sell New Products To Existing Customers Diversification- Sell New Product To New Market
- 5. 14-5 Discussion Questions Describe some of the techniques that an entrepreneur can implement to monitor customer satisfaction and service. What role can the Internet play in this process? Complaint and suggestions programs Focus groups The Internet Customer survey by mail, telephone, or in person
- 6. 14-6 Product Integration Raw Materials Producer Raw Materials Wholesaler Manufacturer Finished Goods Wholesaler Retailer Customer Backward Integration Forward Integration Horizontal Integration Horizontal Integration
- 7. 14-7 Discussion Questions Under what circumstances would an entrepreneur choose not to grow his or her venture? Provide examples. Many continue to exist at a satisfying level of sales with little or no growth. These are typically proprietorships or partnerships that are home based, family owned, service, or craft related. The decision to grow would be dictated by the entrepreneur’s interest and the response of the market to the venture’s product.
- 8. 14-8 Pressures On Firm Growth 1. Existing Financial Resources – cash to expand 2. Human Resources – additional manpower and manhours 3. Management Of Employees – change in management style 4. Entrepreneur’s Time – time is the most precious yet limited resource
- 9. 14-9 Overcoming Financial Resources Pressure • Manage Cash Flow- Budget vs. Actual • Manage Inventory • Manage Fixed Assets • Manage Costs/Profits- Compare Actual vs. Standard (expected) Percentages • Taxes • Record Keeping
- 10. 14-10 Inventory Valuation FIFO- First Items In Inventory = First Sold LIFO- Last Items In Inventory = First Sold Convert To LIFO When: Anticipate Increased Labor, Materials, Production Costs Business/Inventory Growing Computer-Assisted Inventory Control Business Is Profitable
- 11. 14-11 Discussion Questions What are some of the cultural changes or strategies in the organization that should be in place to ensure employee satisfaction and harmony? What could happen if any one or all of these did not exist in a growing culture? Many entrepreneurs find that as the venture reaches the growth stage they need to change the organization culture. In order to survive the entrepreneur needs to consider some important organizational changes.
- 12. 14-12 Overcoming Human Resources Pressures Prepare Job Descriptions Itemize Specifications Outsource HR Responsibilities Recruiting Hiring Establish Benefit Programs Payroll Firing Permanent vs. Part-Time Corporate Culture
- 13. 14-13 Overcoming Employee Management Pressure Participative Management Establish Team Spirit Communicate- Open & Frequent Provide Feedback Delegate Continuous Training Emphasize results to key managers with incentives built in to encourage them to train and delegate. Maintain a focus by establishing a mission with goals and using consensus in decision making. Establish a "we" spirit not a "me" spirit in meetings.
- 14. 14-14 Overcoming Entrepreneur’s Time Management Pressure Increase Productivity Increase Job Satisfaction Improve Interpersonal Relationships Reduce Time Anxiety/Tension Better Health
- 15. 14-15 Time Management Principles 1. Desire- Willpower To Optimize Time 2. Effectiveness- Focus On Important Issues 3. Analysis- Determine Where Time Is Being Wasted 4. Teamwork- Small Amount Of Time Can Be Controlled 5. Prioritize- Deal With Most Important Tasks First 6. Reanalysis- Review Process, Delegate
- 16. 14-16 Growth Categories Unused Potential Actual Growth Little Potential Constrained Professional Management Growth Aspirations High Low Yes No
- 17. 14-17 Discussion Questions How can success ever be failure? Do you agree with the statement “a history of success can actually make you a failure”? Why or Why not? When you are focused on past successes, you can miss new opportunities or changing conditions How can past successes not lead to failure?