Growth Strategy involves significantly increasing performance beyond past levels through internal or external means. Companies measure growth in terms of profits, revenues, sales, employees and market share. Growth strategies can be intensive, involving the company's current activities, or integrative, combining related business activities through backward or forward vertical integration as seen in examples like Reliance Industries.
Growth Strategy involves significantly increasing performance beyond past levels through internal or external means. Companies measure growth in terms of profits, revenues, sales, employees and market share. Growth strategies can be intensive, involving the company's current activities, or integrative, combining related business activities through backward or forward vertical integration as seen in examples like Reliance Industries.
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Growth Strategy involves significantly increasing performance beyond past levels through internal or external means. Companies measure growth in terms of profits, revenues, sales, employees and market share. Growth strategies can be intensive, involving the company's current activities, or integrative, combining related business activities through backward or forward vertical integration as seen in examples like Reliance Industries.
Copyright:
Attribution Non-Commercial (BY-NC)
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Download as PPTX, PDF, TXT or read online from Scribd
in performance objective beyond past level performance . i Growth is something for which most companies strive, regardless of their size.
i Company can Growth internally or externally.
weed for growth strategies in a business organization
¢ To obtain economies of scale
¢ To attract key employees ¢ To increase profit. ¢ To become market leader ¢ To ensure survival. Yeasure of growth of growth
there are many parameters a company may
use to measure its growth. Since the ultimate goal of most companies is profitability, most companies will measure their growth in terms of net profit, revenue, and other financial data.like: sales, number of employees, physical expansion, success of a product line, or increased market share Growth strategy can be divided in to three
¢ Intensive strategy ¢ Integration strategy ¢ Diversification strategy M
¢ It means combining activities related to
the present activities of a firm.such combination can be done on the basis of the industry value chain ¢ Integration can be 1) back ward Vertical integration 2) forward Vertical integration V
i hen one firm engaged in different part of
production activities (e.g producing row material,manufacturing,transporting,distributio n and retailing ) such activity is said to be either back ward or for ward integration
i It can be done based on industry value chain
§
¢ |ne of the earliest, largest and most famous
examples of vertical integration was the Carnegie Steel company. The company controlled not only the mills where the steel was manufactured but also the mines where the iron ore was extracted, the coal mines that supplied the coal, the ships that transported the iron ore and the railroad that transported the coal to the factory, the coke ovens where the coal was cooked, etc. m
¢ The Indian petrochemical giant Reliance
Industries is a great example of vertical integration in modern business. Reliance's backward integration from textiles into polyester fibers and further into petrochemicals was started by Yukesh Ambani . Reliance has entered the oil and natural gas sector, along with retail sector. Reliance now has a complete vertical product portfolio from oil and gas production, refining, petrochemicals, synthetic garments and retail outlets.
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