Growth strategies - frameworks

Question 1

XYZ Corp has a high cash reserve (lots of cash on hand). How can we best use that money to grow the company?

How would you approach this question?

Answer 1

1. Ask your feeler questions. Growth strategies could mean focusing on a certain product, division, or the company overall. This is a true strategic planning question, and you must determine the direction of the questioning.
2. Choose a growth strategy.

Question 2

[Growth strategy] What are feeler questions you can ask? (6)

Answer 2

1. Is the industry growing?
2. How are we growing relative to the industry?
3. Are our prices in line with our competitors?
4. What have our competitors done in marketing and product development?
5. Which segments of our business have the highest future potential?
6. Do we have funding to support higher growth?

Question 3

[Growth strategy] What are the different types of growth strategy? (6)

Answer 3

1. Increasing sales
2. Increase distribution channels
3. Increase product line
4. Invest in a major marketing campaign
5. Diversify products or services offered
6. Acquire competitors or a company in a different industry