Week 44: Krogh, Cusumano 2001 Flashcards
Three strategies for managing fast growth
What are the three strategies for managing fast growth according to Krogh and Cusumano (2001)?
Scaling, Duplication, and Granulation.
What is scaling in the context of fast growth strategies?
Scaling means doing more of what you’re good at, expanding core products and services to reach more customers.
When does scaling work best?
When the market is large, the product offers unique value, and the company can distribute products widely at low costs.
What is duplication in the context of fast growth strategies?
Duplication means repeating the business model in new regions by expanding into different geographical markets.
When does duplication work best as a growth strategy?
When the business needs a physical presence in new regions, or when distribution channels are underdeveloped.
What is granulation in the context of fast growth strategies?
Granulation involves growing smaller, distinct business units (or cells) to explore new products and markets.
When does granulation work best as a growth strategy?
When scaling and duplication have reached limits, or when a new technology or market opportunity arises.
What is the main risk associated with granulation?
New business units may not fully leverage existing knowledge or asset bases, increasing risk.
What is a key requirement for successful scaling?
Specializing and standardizing processes like finance and accounting to handle increased transactions.
What does duplication require for success?
A balance between standardization and adaptation, and flexible, independent managers.
What is the role of black boxes in duplication?
Black boxes are key elements of the business infrastructure that are transferred to new locations to maintain consistency.
What is a limitation of duplication?
Customer preferences may be too diverse for a single business model to fit all regions.
