strategies for growth & managing the implications of growth book by shepherd hisrich,peters
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Strategies For Growth & Managing The Implications Of Growth Book by Shepherd Hisrich,Peters. Chap # 13. Presented To: Sir Ghulam Abbas. Presentation Topic: Growth Strategies Presented To : Sir Gulam Abbas Presented By: Uzma Noreen. Roll # 07-08 BSIT 7th. Growth Strategies. - PowerPoint PPT PresentationTRANSCRIPT
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Strategies For Growth & Strategies For Growth & Managing The Implications Managing The Implications
Of GrowthOf GrowthBook by Shepherd Hisrich,PetersBook by Shepherd Hisrich,Peters
Chap # 13Chap # 13
Presented To: Sir Ghulam Abbas
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Roll # 07-08Roll # 07-08BSIT 7thBSIT 7th
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A Successful new entry provides the A Successful new entry provides the opportunity for Entrepreneur to grow his opportunity for Entrepreneur to grow his business.business.
Opportunities for new entry are generated Opportunities for new entry are generated by the knowledge of entrepreneur and by the knowledge of entrepreneur and from organizational knowledge.from organizational knowledge.
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Product development Product development StrategiesStrategies
Market development Market development Strategies Strategies
Diversification Diversification StrategiesStrategies
Penetration Strategies
Product
Market
Existing
New
Existing New
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A Strategy to grow by encouraging existing A Strategy to grow by encouraging existing customers to buy more of the firms current customers to buy more of the firms current product.product.
Focus on the firms existing product in its existing Focus on the firms existing product in its existing market.market.
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Strategy to grow by selling the firms Strategy to grow by selling the firms existing products to new group of existing products to new group of customers.customers.
Group of customers can be categorized in Group of customers can be categorized in term of Geographic's or demographics or term of Geographic's or demographics or new product use.new product use.
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Selling the existing product in new location.Selling the existing product in new location.
New Demographic MarketNew Demographic MarketBased upon income, education, age, sex,where they Based upon income, education, age, sex,where they
live.live.
New Product UseNew Product UseAn entrepreneurial firm find out that people use its An entrepreneurial firm find out that people use its
product in a way that was not expected product in a way that was not expected
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A strategy to grow by developing and A strategy to grow by developing and selling new products to people who are selling new products to people who are already purchasing the firms existing already purchasing the firms existing product.product.
Experience with a particular group is a Experience with a particular group is a source of knowledge.source of knowledge.
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A strategy to grow by selling a new A strategy to grow by selling a new product to a new market.product to a new market.
There are three types of diversification There are three types of diversification 1.1.Backward IntegrationBackward Integration2.2.Forward IntegrationForward Integration3.3.Horizontal IntegrationHorizontal Integration
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Backward integrationBackward integration
Raw materialProducer
Raw material Wholesaler
Manufacturer
Finished goods wholesaler
Customer
Forward Integration
Horizontal
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As the firm grow ,it changes.As the firm grow ,it changes.These changes introduces a number of These changes introduces a number of
managerial challenges.managerial challenges.1.1.Pressure on existing financial resourcesPressure on existing financial resources2.2.Pressure on Human ResourcePressure on Human Resource3.3.Pressure on Management of EmployeePressure on Management of Employee4.4.Pressure on Entrepreneurs TimePressure on Entrepreneurs Time
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Tayyaba JahangirTayyaba JahangirBsit-07-33Bsit-07-33
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Financial ControlFinancial ControlAppropriate controls to ensure that Appropriate controls to ensure that
entrepreneur met projections and goals.entrepreneur met projections and goals. Managing cash flowManaging cash flow Managing inventoryManaging inventory1.1. LIFOLIFO2.2. FIFOFIFO Managing fixed assetsManaging fixed assets Managing costs and profitsManaging costs and profits1.1. Taxes 2. Record keepingTaxes 2. Record keeping
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Managing cash flowManaging cash flow Up-to-date Up-to-date
assessment of assessment of cash position.cash position.
Prepare monthly cash flow statements
Comparing budgetedOr Performa with
Actual resultsThis indicates
Cash flow problems
Controlling the cash needs
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Managing inventoryManaging inventory
inventoryTo much inventory
Drain on cash flow• Manufacturing• Transportation• Storage
1. Customer demand are not meet2. Lost in sales
To little inventory
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LIFO or FIFOLIFO or FIFO
Conversion to LIFO is beneficial when…Conversion to LIFO is beneficial when… Rising labor, materials, and other production Rising labor, materials, and other production
costs are anticipated.costs are anticipated. Business and inventory are growing.Business and inventory are growing. Business has computer-assisted inventory control Business has computer-assisted inventory control
method capability.method capability. Profitable business.Profitable business.
If the start up is losing money, there is If the start up is losing money, there is no no point in conversion methods.no no point in conversion methods.
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Managing fixed assetsManaging fixed assetsInvolves long-term commitment and large Involves long-term commitment and large
investments for new venture.investments for new venture. Equipment require servicing and insurance.Equipment require servicing and insurance. Affects utility costs.Affects utility costs. Equipment will be depreciated over time.Equipment will be depreciated over time.Leasing could consider as alternative.Leasing could consider as alternative. Terms of leaseTerms of lease Type of asset to be leasedType of asset to be leased Usage demand on the asset.Usage demand on the asset.
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Managing costs and profitsManaging costs and profits
Finding the cause of problems effecting profits
Eliminating the problems to increaseprofits
Computing net income for interim periods During the year
Establishing the standards andComparing results
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TaxesTaxes Withhold federal and state taxes for his / her Withhold federal and state taxes for his / her
employees.employees.If payments are late higher interest and penalties If payments are late higher interest and penalties
are to be paid.are to be paid.
Record keepingRecord keeping Maintain and keeping the databases for…Maintain and keeping the databases for… Customer knowledge and interestCustomer knowledge and interest Sales new and existingSales new and existing
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Beenish JahangirBeenish JahangirBsit-07-04Bsit-07-04
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OVERCOMING PRESSURES ON THE OVERCOMING PRESSURES ON THE MANAGEMENT OF EMPLOYEESMANAGEMENT OF EMPLOYEES
Participative Style Of ManagementParticipative Style Of Management
The entrepreneur/manager involves other in The entrepreneur/manager involves other in decision making processdecision making process
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Activities to successfully grow a Activities to successfully grow a BusinessBusiness
Establish a team spirit Establish a team spirit Communicate with employeesCommunicate with employees Provide feedbackProvide feedback Delegate some responsibility to othersDelegate some responsibility to others Provide continuous training for employeesProvide continuous training for employees
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OVERCOMING PRESSURES ON OVERCOMING PRESSURES ON ENTREPRENEUR’S TIMEENTREPRENEUR’S TIME
Time managementTime management
The process of improving an individual’s The process of improving an individual’s productivity through more efficient use of productivity through more efficient use of time.time.
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Benefits Of Time ManagementBenefits Of Time Management
Increased productivityIncreased productivity Increased jo satisfactionIncreased jo satisfaction Improved interpersonal relationshipsImproved interpersonal relationships Reduced time anxiety & tensionReduced time anxiety & tension Better healthBetter health
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BASIC PRINCPLES OF TIME BASIC PRINCPLES OF TIME MANAGEMENTMANAGEMENT
Principle Of DesirePrinciple Of DesireA recognition of the need to change A recognition of the need to change
personal attitudes & habits regarding the personal attitudes & habits regarding the allocation of time.allocation of time.
Principle Of EffectivenessPrinciple Of EffectivenessA focus on the most important issues, even A focus on the most important issues, even
when under pressure.when under pressure.
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Principle Of AnalysisPrinciple Of AnalysisUnderstanding how time is currently being Understanding how time is currently being
allocated, and where it is being allocated, and where it is being inefficiently invested.inefficiently invested.
Principle Of TeamworkPrinciple Of TeamworkAcknowledgment that only a smallamount of Acknowledgment that only a smallamount of
time is actually under one’s control & that time is actually under one’s control & that most of one’s time is taken up by others.most of one’s time is taken up by others.
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Principle Of Prioritized PlanningPrinciple Of Prioritized PlanningCategorization of tasks by their degree of Categorization of tasks by their degree of
importance & then the allocation of time importance & then the allocation of time to tasks based on this categorization. to tasks based on this categorization.
Principle Of ReanalysisPrinciple Of ReanalysisPeriodic review of one’s time management Periodic review of one’s time management
process.process.
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CATEGORIZATION OF CATEGORIZATION OF ENTREPRENEURS & THEIR FIRM’S ENTREPRENEURS & THEIR FIRM’S GROWTHGROWTH
Four Types Of Entreprenuers & Firm GrowthFour Types Of Entreprenuers & Firm Growth
Unused potential Actual growth
Little Potential Constrained
No Yes
High
Low
Entrepreneur’s growth aspiration
Entrepreneur’s ability to institute professional management practices
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