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NINE MILE

Management Consulting

Small-to-Medium
Brar, H., Dhir, M., Elliott, G., & Tabak, P. November 2012

Sized Enterpises & Business Growth

www.ninemileco.com
Copyright 2012. All Rights Reserved. The Nine Mile Management Consulting Group

Nine Mile Management Consulting Group Small-to-Medium Sized Enterprises & Business Growth In today's volatile political, and economic climate, businesses have to be adaptive, creative, and innovative in order to achieve sustainable growth. For the small, or medium sized business (SMEs), however, grappling with internal process related issues can be challenging due to managerial, cultural, and financial instabilities that efficient corporate evolutionary processes tend to harmonize over time. Identifying critical points that can explain the mechanics of enterprise growth is crucial in attempting to understand business "success" as a mathematical process. The Importance of Strategy and its Connection to Business Growth: Business growth is defined as improving some measure of an enterprise's success, and is achieved by either boosting top-line revenue via increased sales, or improving bottom-line profitability via cost minimization. The above merely provides, matter-offactly, a generalized overview for achieving success, but does not partition the system into a set of instructions for achieving the desired end result. Growth, most certainly, can be attained via cost minimization, and increased sales, but each is a process unto itself possessing intricate cause-effect characteristics. By merely stating cost minimization yields growth does not provide a clear-cut strategy, or set of instructions to propel business activity in the right direction. The differentiating conditions, or factors that contribute to schisms between successful, and unsuccessful enterprise activities, and results is two-fold. Firstly, businesses that achieve top-line revenue, and bottomline profitability results are strategy driven. Having an unbiased plan grounded in statistical decision theory that outlines business activity related goals, and objectives with predictive capabilities, positions firms in this class ahead of their respective non-strategic counterparts. Secondly, successful small to medium sized firms are adaptive, innovative, and creative in all operational respects from talent acquisition to cash flow management. It's important to have a general business strategy, but it's more important to compartmentalize corporate activities into sub-activities, and execute strategies that are specific to each working part.

November, 2012

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Figure 1: Importance of Strategy

Strategic Analysis

Strategic Choice

Strategy Implementation

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