ASSESSING

GROWTH
OPPORTUNITY
PREPARED BY ALI ARSHAD
CHEM201105009
FOSC-7A
ASSESSING GROWTH OPPORTUNITIES

• Intensive Growth
• Integrative Growth
• Diversification Growth
• Downsizing and Divesting Older Businesses
INTENSIVE GROWTH

Corporate management should first review opportunities for improving existing businesses
INTEGRATIVE GROWTH

A business can increase sales and profits through backward forward or horizontal
integration with in its industry.
DOWNSIZING AND DIVESTING OLDER
BUSINESSES
• Company is must carefully prune, Harvest or divest tired old businesses to release
needed resources or other resources or reduce cost.
DIVERSIFICATION GROWTH

• Diversification Growth makes sense when good opportunities exists outsides the present
businesses.
• The industry is highly attractive and the company has the right mix of of business
strength to succeed.
CONCENTRIC DIVERSIFICATION

• Diversification refers a company's a growth strategy in which a company seeks to grow

and develop by adding new products to its existing product lines to attract new customers
EXAMPLES

• 1. Motorola : mobile phones in 1973 Motorola researchers martyin cooper made the first
mobile call using that weight 1.1 kg and measure 23 cm long . Its took a 10 hours to
recharge and then mobile smart phones take the whole era and it took 2 hour to recharge
it virtual carry anywhere easily

• 2,. Dell company manufactured computers initially then diversified horizontally to new
products laptops
HORIZONTAL DIVEERSIFICATION

• Horizontal Diversification: type of diversification, a growth

strategy in which a company seeks to add to its existing lines
new products that will appeal to its existing customers.
EXAMPLES

• Colgate
• manufacturing company sells dental health supplies like toothpastes
and flows to individual consumers they notice a plateau in sales over
period of time. And decide t diversify horizontally to add more
products to their existing dental care lines.(toothbrush and
mouthfreshners)

• Nike
• was initially a sports company manufacturs of sports shoes has
implemented horizontal diversification by expanding into new product
like sports wear (shirts T-shirts and tracksuits) . Customer who
purchase the companys shoes might be inclined to also purchase sports
clothing from their store.
CONGLOMERATE DIVERSIFICATION

• Conglomerate Diversification: This type of diversification involves expanding into

unrelated industries or businesses. The focus is on creating a portfolio of businesses
across different industries to minimize risks and capitalize on various investment
opportunities.
EXAMPLES

1. Berkshire Hathaway: Led by Warren Buffett, Berkshire

Hathaway began as a textile manufacturing company and
evolved into a conglomerate that holds diverse investments in
sectors such as insurance, utilities, railroads, manufacturing, and
technology.
2. General Electric (GE): Originally an electric company, GE
diversified into various industries such as aviation, healthcare,
and energy through acquisitions and strategic investments,
creating a diversified conglomerate with a broad range of
business
THANK
YOU