Growth Stage Flashcards
1
Q
Characteristics
A
- Established or expansion state
- Either growing into new markets or establishing presence in the industry
- Business innovates and refines its products/services for sustained growth or to meet needs of market in a new location (overseas/interstate), demographic or target market
- Should revisit business plans, goals and objectives, set new financial and marketing plans for new stage
- Might develop new ideas or acquire another business to market new products/services
- May need to create a new organisational structure or new management positions
- May hire extra employees
2
Q
Opportunities
A
To establish the presence or expand business into new markets. Increase range of products which gets an buy more products for the business, employ more employees, increases the profitability, growth can increase revenue flow.
3
Q
Threats
A
Becoming complacent or overextending in the market
4
Q
Challenges
A
- Rapid growth - may not have enough cash flow, may overextend resources in order to expand
- Cash flow problems
- Issues with creditors
- Unable to meet obligations (commitments) e.g. supply of goods/services
- New markets must not be too small to support all competing businesses
- Neglecting current customer base in pursuit of a new market or larger market share
- New competitors to your market
- Can the founder of the business relinquish control of some areas to reliable staff
- Competing demands on time
5
Q
Strategies
A
- Business founder to be heavily involved in recruitment process - allows for delegation of responsibility ensuring running of a growing business
- Ensure all staff are aware of and understand business goals and objectives - all working towards a common goal
- Invest in research and development and professional development of staff to remain competitive. Investing in staff development also assists in keeping staff motivated and invested in the success of a business.
