Growth strategies in small business

growth strategy in small business

1. GROWTH STRATEGY IN SMALL BUSINESS BY. RACHIT JAIN B.COM (HONS) SEM 3 RD 29HBCM13

2. WHAT IS GROWTH STRATEGY The term Strategy is commonly used in our day-to-day life. Strategy is a well-planned course of actions devise to achieve an objective. Growth strategy means a plan to help the enterprise grow big in course of time.

3. STAGES OF GROWTH Start Up Stage. Growth Stage. Expansion Stage. Maturity Stage. Decline Stage.

4. TYPES OF GROWTH STRATEGIES Internal Growth Strategies : These imply that enterprises grow their own without joining hands with other enterprises . External Growth Strategies : These imply that enterprises grow by joining hands with other enterprises.

5. MAIN STRATEGIES OF GROWTH Expansion. Diversification. Joint Venture. Merger. Sub-Contracting.

6. EXPANSION Expansion is a form of internal growth of business. Expansion is the process of becoming greater in size, number, or amount. Expansion is an increase in the level of activity and of the goods and services of enterprise taking place in course of time.

7. FORMS OF EXPANSION Expansion through market penetration. Expansion through market development. Expansion through product development or modification.

8. DIVERSIFICATION Diversification is another form of internal growth of business. Diversification may be defined as a process of adding more products / markets / services to the existing one. Growth by adding new products to the existing product line is called Diversification .

9. TYPES OF DIVERSIFICATION Horizontal Diversification. Vertical Diversification. Concentric Diversification. Conglomerate Diversification.

10. JOINT VENTURE Joint Venture is a type of external growth strategies adopted by business firm. Joint venture is a restricted or a temporary partnership between two or more firms to undertake jointly to complete a specific venture. The parties who enter into agreement are called co-ventures.

11. MERGER Merger is yet another form of external growth strategies. When two or more existing enterprises are combined into one , it is called Merger . It takes place in two ways, first is Absorption when an enterprise or enterprises may be acquired by another usually a big one and second is Amalgamation when two or more existing enterprise merge into one to form a new enterprise.

12. SUB-CONTRACTING Sub-Contracting system is a mutually beneficial commercial relationship between the to companies. A sub-contracting relationship exists when a company places on order with another company for the production of parts, components, sub-assemblies to be incorporated into a product sold by the contactor.

13. THANK YOU