5. growth strategy Flashcards
where to grow
operational reinforcement, related expansion, related exploration
how to grow
internal dvlp, M&A, alliances
operational reinforcement
Adjency: coverage, channel, customer, product
related expansion
Adjency: geographical, segment
related exploration
Adjency: vertical, industry
benefit of growth with fin approach
over diversification risk reduction
financial synergies
tax optimization
acquiring undervalued business
Build Borrow Buy model
draw it
knowledge questions
what firm possess
governance questions
which are the challenges
increase scale
increase size of the company (more employees)
increase scope
expanding in new areas (new product)
internal dvlp +
gradual fin commitment
better control
encourage CE
align with corpo culture
internal dvlp -
slow growth
risk of failure
lack of expertise
Alliances +
faster access to new market
shared risk and costs
access to more resources
alliances -
risk of opportunism
limited control over partnership
potential of creating competitor
M&A +
faster access to new market
full control
eliminate competitor
M&A -
costly
risk of integration failure
potential loss of employee motivation
