growth entrepreneurship
Post on 04-Apr-2018
222 Views
Preview:
TRANSCRIPT
-
7/30/2019 growth entrepreneurship
1/20
GROWTH
By
RAJEEV ROYAssociate Professor & NEN Faculty Leader
XIMB
-
7/30/2019 growth entrepreneurship
2/20
Rajeev Roy, XIMB EntrepreneurshipOxford University Press, 2008
GROWTH
CHAPTER 17
ENTREPRENEURSHIP
By
RAJEEV ROYOXFORD UNIVERSITY PRESS 2008
-
7/30/2019 growth entrepreneurship
3/20
Rajeev Roy, XIMB EntrepreneurshipOxford University Press, 2008
Chapter Objectives
To understand the role of growth in a startup
To list the stages of growth
To tabulate various strategies used to grow theentrepreneurial enterprise
To understand diversification of a business
To discuss franchising a business
To discuss various ways to start international operations
To list the barriers to international growth
To discuss the steps to take for successful growthoverseas
To understand the reasons for relocating the business
To find out the best avenues for financing growth
-
7/30/2019 growth entrepreneurship
4/20
Rajeev Roy, XIMB EntrepreneurshipOxford University Press, 2008
Stages of Growth
Existence
Survival
Success Take-off
Consolidation
-
7/30/2019 growth entrepreneurship
5/20
-
7/30/2019 growth entrepreneurship
6/20
Rajeev Roy, XIMB EntrepreneurshipOxford University Press, 2008
Threat Matrix
-
7/30/2019 growth entrepreneurship
7/20
Rajeev Roy, XIMB EntrepreneurshipOxford University Press, 2008
Growth Strategies
Diversification
Joint ventures
Acquisitions Mergers
Franchising
-
7/30/2019 growth entrepreneurship
8/20
Rajeev Roy, XIMB EntrepreneurshipOxford University Press, 2008
Diversification Strategies
-
7/30/2019 growth entrepreneurship
9/20
Rajeev Roy, XIMB EntrepreneurshipOxford University Press, 2008
Joint Ventures
Internal reasons
Leveraging strengths
Spreading risks
Improving access tofinance
Economies of scale
Access to new
technologies Inculcating new
processes
Competitive goals
Pre-emptive move
against competition
Defensive response toaggressive competitors
Creation of larger and
stronger competitive units
Fast access to newmarkets
-
7/30/2019 growth entrepreneurship
10/20
Rajeev Roy, XIMB EntrepreneurshipOxford University Press, 2008
Mergers and Acquisitions
Economies of scale by cutting out duplicate operationsand departments, and increasing profits.
Increase in market share by combining sales andcapacities of both.
Increase in sales by cross selling of complementaryproducts
Synergies by making better use of complementaryresources.
Reducing risk by diversification into other products and
markets Sometimes there can be a tax saving angle when losses
in one can be used to offset profits in another.
Bigger entities are more likely to survive. So bigger isbetter.
-
7/30/2019 growth entrepreneurship
11/20
Rajeev Roy, XIMB EntrepreneurshipOxford University Press, 2008
Types of Mergers
Horizontal merger
Vertical merger Congeneric merger
Conglomerate merger
-
7/30/2019 growth entrepreneurship
12/20
Rajeev Roy, XIMB
Entrepreneurship
Oxford University Press, 2008
Acquisitions
Acquisition can be of two types:
The acquirer buys the assets of the target
company so that they have no role in
discharging liabilities.
The acquirer buys the equity of the target
company and takes on all assets and
liabilities.
-
7/30/2019 growth entrepreneurship
13/20
Rajeev Roy, XIMB
Entrepreneurship
Oxford University Press, 2008
Franchising
Characteristics of a franchisable business:
It needs to have a proven track record
The business should have a strong brand Operating processes should be
standardized and documented
Ultimately, the business should beprofitable
-
7/30/2019 growth entrepreneurship
14/20
Rajeev Roy, XIMB
Entrepreneurship
Oxford University Press, 2008
Road Map to Successful
Franchising
Build a top-notch sales team.
Have adequate financial resources
Carefully select franchisees Have good training material
Have a quality programme
Keep building the brand Invest in research and development
-
7/30/2019 growth entrepreneurship
15/20
Rajeev Roy, XIMB
Entrepreneurship
Oxford University Press, 2008
Internationalisation Strategies
-
7/30/2019 growth entrepreneurship
16/20
Rajeev Roy, XIMB
Entrepreneurship
Oxford University Press, 2008
Adapting a Product
-
7/30/2019 growth entrepreneurship
17/20
Rajeev Roy, XIMB
Entrepreneurship
Oxford University Press, 2008
Barriers to International Growth
Internal ability
Domestic regulations
Tariff barriers Quotas
Embargoes
Business barriers Cultural barriers
-
7/30/2019 growth entrepreneurship
18/20
Rajeev Roy, XIMB
Entrepreneurship
Oxford University Press, 2008
Steps to International Growth
Communicate your internationalization plan toyour employees
Define your goals for your internationaloperations
Make a business plan on how you want toachieve your goals
Accurately determine the amount of money youneed
Get the money ready in time
-
7/30/2019 growth entrepreneurship
19/20
Rajeev Roy, XIMB
Entrepreneurship
Oxford University Press, 2008
Steps to International Growth
Conduct market research to understand thesenew markets
Make suitable modifications based on yourmarket research.
Pick a good team to head your internationalforay and train the team
Hire good lawyers, accountants from the targetcountries
Explore possibilities for cross border mergersand alliances.
Plan in the long term
-
7/30/2019 growth entrepreneurship
20/20
Rajeev Roy, XIMB
Entrepreneurship
Oxford University Press, 2008
Financing Growth
Internal accruals
Fresh equity infusion by self
Venture capital Bank finance
Taking on new partners
top related