Strategies For Growth & Managing The Implications Of Growth

Book by Shepherd Hisrich,Peters Growth Strategies A Successful new entry provides the opportunity for Entrepreneur to grow his business. Opportunities for new entry are generated by the knowledge of entrepreneur and from organizational knowledge. Growth Strategies Based Upon Knowledge of Product And Market

Penetration Strategies A Strategy to grow by encouraging existing customers to buy more of the firms current product. Focus on the firms existing product in its existing market. Market Development Strategies Strategy to grow by selling the firms existing products to new group of customers. Group of customers can be categorized in term of Geographic's or demographics or new product use. New Geographical Market Selling the existing product in new location. New Demographic Market Based upon income, education, age, sex,where they live. New Product Use An entrepreneurial firm find out that people use its product in a way that was not expected Product Development Strategies A strategy to grow by developing and selling new products to people who are already purchasing the firms existing product. Experience with a particular group is a source of knowledge.

Diversification Strategies A strategy to grow by selling a new product to a new market. There are three types of diversification Backward Integration Forward Integration Horizontal Integration Example of value added chain and Diversification Backward integration

Implications of Growth For the firm As the firm grow ,it changes. These changes introduces a number of managerial challenges. Pressure on existing financial resources Pressure on Human Resource Pressure on Management of Employee Pressure on Entrepreneurs Time

Financial Control Appropriate controls to ensure that entrepreneur met projections and goals. Managing cash flow Managing inventory LIFO FI FO

Managing fixed assets Managing costs and profits 1. Taxes 2.

Record keeping

Managing cash flow Up-to-date assessment of cash position. Prepare monthly cash flow statements

Controlling the cash needs

This indicates Cash flow problems

Comparing budgeted Or Performa with Actual results

Managing inventory

LIFO or FIFO Conversion to LIFO is beneficial when Rising labor, materials, and other production costs are anticipated. Business and inventory are growing. Business has computer-assisted inventory control method capability. Profitable business. If the start up is losing money, there is no no point in conversion methods. Managing fixed assets Involves long-term commitment and large investments for new venture. Equipment require servicing and insurance. Affects utility costs. Equipment will be depreciated over time. Leasing could consider as alternative. Terms of lease Type of asset to be leased Usage demand on the asset. Managing costs and profits

Taxes

Withhold federal and state taxes for his / her employees. If payments are late higher interest and penalties are to be paid. Record keeping Maintain and keeping the databases for

Customer knowledge and interest Sales new and existing

OVERCOMING PRESSURES ON THE MANAGEMENT OF EMPLOYEES

Participative Style Of Management

The entrepreneur/manager involves other in decision making process

Activities to successfully grow a Business

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Establish a team spirit Communicate with employees Provide feedback Delegate some responsibility to others Provide continuous training for employees

OVERCOMING PRESSURES ON ENTREPRENEURS TIME

Time management

The process of improving an individuals productivity through more efficient use of time.

Benefits Of Time Management

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Increased productivity Increased jo satisfaction Improved interpersonal relationships Reduced time anxiety & tension Better health

BASIC PRINCPLES OF TIME MANAGEMENT Principle Of Desire A recognition of the need to change personal attitudes & habits regarding the allocation of time. Principle Of Effectiveness A focus on the most important issues, even when under pressure.

Principle Of Analysis Understanding how time is currently being allocated, and where it is being inefficiently invested. Principle Of Teamwork Acknowledgment that only a smallamount of time is actually under ones control & that most of ones time is taken up by others. Principle Of Prioritized Planning Categorization of tasks by their degree of importance & then the allocation of time to tasks based on this categorization. Principle Of Reanalysis Periodic review of ones time management process.

CATEGORIZATION OF ENTREPRENEURS & THEIR FIRMS GROWTH

Four Types Of Entreprenuers & Firm Growth