WHEN GROWTH

STALLS
Presented by-
Shounak Dash - 320SM1007
Suvendu Kumar Jena - 320SM1008
Apoorva Pallai - 320SM1011
Sahil Kumar Rout - 320SM1017
Shruti Ramsaha - 320SM1027
 INTRODUCING THE
GROWTH STALL
Organizational
Most of the reasons for stall Design
Economi Knowable Addressable
Governm Common Strategy
c
ent Assumpti
meltdow
rulings ons
ns

Acts of
God

They are controllable

For which management cannot
by management
be held accountable
INTRODUCING THE
GROWTH STALL
A premium market position backfires

Innovation management breaks down

A core business is abandoned prematurely

The company lacks a strong talent bench

WHEN A PREMIUM POSITION
BACKFIRES
 The inability of a firm to respond effectively to new,

low-cost competitive challenges.

 A significant shift in customer valuation of product

features.

 Remains insulated longer than its competitors against

evolution in the external environment.

 A cycle of disdain, denial, and rationalization.

THE SEARCH FOR STALL
POINTS
 Taking pre historic data's of 10 years

 Annual growth rate should be above 2 %

 Difference between preceding and following

years should be 6% or above

 Taking CAGR for calculations.

EXAMPLE OF STALL POINT
THE ROOT CAUSES
OF
REVENUE STALLS
WHEN DOES A PREMIUM
POSITION BECOME A TRAP?
 Market Dynamics

 Executive Team Attitudes

 Market and Competitor Research

 Market and Competitor Research

WHEN INNOVATION
MANAGEMENT BREAKS DOWN
 Innovation breakdown and systemic

inefficiencies or dysfunctions

 Shifting R&D activities out to their business

unit
 WHEN A CORE BUSINESS IS ABANDONED
 The failure to fully exploit growth opportunities in the
existing core business.
 Many public companies struggle in their efforts to
grow established businesses.
 Take-overs are based on strategies for growing the
core strategies.

Common mistakes we saw in this category

 believing that one’s core markets are saturated
 viewing operational impediments as a signal to move
on to new and easier competitive terrain.
WHEN TALENT COMES UP SHORT
 A lack of leaders and staff with the skills

and capabilities required for strategy

execution.

 What stops growth dead in its tracks is

not merely a shortage of talent but the

absence of required capabilities, most
visibly at the executive level.
TALENT BENCH SHORTFALL

 Internal skill gaps

 Narrow experience base

 Loss of key talent

 Key person dependence

 OTHER LESS COMMON CAUSES

Failed acquisition 7% Key customer dependency Strategic diffusion or

• Misconceived economics 6%
• Unsustainable financial
conglomeration 5%
• Distribution channel shift
acquisition model • Customer strategy dependence
• Unrealized synergies • Monopsony buyer

Adjacency failures 4% Voluntary growth

• Overextension of the formula slowdown 2%
• Inability to manage new model
• Incorrect new business siting or
stewardship
ARTICULATION AND TESTING
STRATEGIC ASSUMPTIONS
 They offer two kinds of tools for the assistance of executives in spotting signs of
vulnerability to grow stalls in their own organizations i.e.

 First is the diagnostic self-test.

 Second is the Financial matrix.

Four Practices are :

 Commission a core-belief identification squad.
 Conduct a pre-mortem strategic analysis.
 Appoint a shadow cabinet.
 Invite a venture capitalist to your strategy review.
RENEWING COMPETENCE IN STRATEGY
Growth stalls can bring down even the most admired companies, and exact a
sizable financial and human toll. After a stall sets in, the odds of recovery
increase dramatically with the passage of time.
The practices we recommend in this article compete for space on an already
overcrowded agenda.
One of particular concern today is the shrinking half-life of established
business models. Compounding this urgency, all signs point to an increasing
risk of stalls in the near future.
Clay Christensen argued a decade ago that competent strategic thinking was
atrophying in the executive suite. The practices we outline here create that early
warning capability.
Whatever other concerns are on the strategy agenda, guarding against growth
stalls should be at the top.
The tools we offer will enable the executive team to continually test the
accuracy of its world view and to flag any flawed assumptions that might
trigger a stall if they go uncorrected.