Strategies For Growth for small and medium organization.pptx

How organization should take the approach while creating the growth strategies for their business? The PPT credits to different learning from mckinesy, harvard business school, porter's five forces model, clayton christensen theory of disruptive strategies and IIM Banglore's online course on corporate strategies.
This will help decision makers and leaders in streamlining their thought process while creating the options of growth strategies.

This is the part of our session that we conduct for our consulting clients

1. Strategies For Growth

2. Origin of Growth: Growth Drives from the Performance of the Organization and Vision of the Leadership Team of the Organization, Strategies are Opted to Pursue the vision the Organization or Promoters in many cases

3. 7s Model:

4. Types of Growth Lorem Ipsum Lorem Ipsum Lorem Ipsum Growth Strategy Organic Growth Inorganic Growth

5. Organic Growth: Here, Company Opt for the Greenfield Projects, whatever they do they do it own. The Market and Product Expansion are the Major Option chosen by the Companies. In Organic Growth, The Company’s real Managerial skills are evaluated in terms of Operational and Process efficiency

6. In- Organic Growth: Here, The Company may choose any of the following Options:- Product, Market Expansion Reverse Integration Forward Integration, Through Joint Ventures (here a new entity is created) Mergers or (Two firms Merge and New Entity Created) Acquisition (Acquirer Owns the power to renamed or not ) Note: Horizontal Integration is most common while In-Organic Growth

7. Understanding the Value Chain of the Business A value chain is a business model that describes the full range of activities needed to create a product or service. For companies that produce goods, a value chain comprises the steps that involve bringing a product from conception to distribution, and everything in between—such as procuring raw materials, manufacturing functions, and marketing activities .

8. Ansoff Matrix: The Firm May, Choose to Grow by: Developing New Market Development( Building Strong Supply Chain ) New Product Expansion

9. Strategy Integration

10. Backward Integration: Make or Buy Decision Scared Raw -Material Resources Ex: Cafe Coffee Day Plant own Coffee Beans Makes own furniture Forward Integration: Ex Indian Oil Corporation own many company operated Fuel Station Vertical Integration : Within VC

11. It is Observed that: Vertical Integration is very Common in the Emerging Economies. Horizontal Integration Often Happens in Developed Economies

12. Related Diversification Vs Unrelated Diversification “Related diversification” refers to the firm’s entry into new products leveraging its activities and existing capabilities. For instance, when an apparel manufacturer enters into ties and cuff-links, it is leveraging its existing customer relationships to enter new product-lines. • “Unrelated diversification” on the other hand, refers to entry into absolutely new markets – where the firm has to start new activities or acquire new capabilities. At best, it could leverage its generic capabilities like building a brand.

13. Cont. Unrelated Diversification is often done for Pure financial Purpose, As it required different Core-Competency, Firm Choose to Grow Inorganically. Ex: Once Coca-Cola Bought Film Studio, Starbuck sold Furniture. Many Indian Conglomerate like TATA, Aditya Birla Horizontally Integrated Organically

14. What to do? Which Option to Choose? To answer this, Intuitive Guts of the Promoter often plays vital role Analyse the Industry Competitiveness by Using Five Forces Analyse the Resource Based View Of the Organization Look for the Core Competency as an Organization Look for the VRIO scan the Resources Analyse the Gap in the Industry? Is your Product is solving bigger Problem of the Industry? Choose whether you ll create Cost Leadership, Differentiation or Focused Strategy List the Key Resources as an Parent Organization you ll need to Exploit and Acquire

15. Cont. Analyze the Key Growth and De-Growth Drivers of the Industry Understand the Jobs to Be Done Theory , what product were used before yours, What product will take up the next to nail the same job Study the product life cycle - Techn Introduction stage Study the PESTEL Analysis of the Product /Industry Study the Competitor Analysis - To be done Lastly, Also study the risk appetite , based on what organization can and can not do.

16. Lenses of Jobs To be Done Every Year Thousands of Products are being Launched, Roughly 80% of them does not succeed financially, Because they don’t target a job that customer are trying to get done.

17. Product Life Cycle

18. External Analysis

19. PESTEL Along with AGM Reports of Similar Limited Company

20. Focusing on Problem Solving Products/ Services

21. Estimated CAGR It is advisable to see past performance of the Industry/ Product, But We cannot always drive the car by watching rear mirror. So, Study the Potential Growth Driver is very essential.

22. Analysing Growth Drivers and De-growth Drivers Consumer Beh. Social Aspect Economic Reforms Gov Policies Technology

23. Focus of the Strategy Cost Leadership Differentiation

24. VRIO and RBV Are Resources of the Organization Aligned with the strategy which we have chosen? Let’s Analyse the Resources which we need to acquire.

25. COMPETITIVE DIFFERENTIATOR Do Our Resources- Processes are Capable to Create Competitive Advantage to us?

26. RBV and VRIO

27. What Organization can do and Can’t do Finally, We have to Identify as an Organization what our Organization Can do and Cannot do. How Our Resource- Process - Profit Formula are Aligned. Measure our Risk Appetite. Resource Profit Formula Process