Essay on Is Growth Always an Inherent Corporate Value?

850 Words Dec 6th, 2013 4 Pages
Is Growth Always an Inherent Corporate Value?
Growth Definition:
Growth can be defined as a company that produces substantial profitable earnings and these profits increase at high rates than the existing economy. A company with growth inclines to have earnings which can be used for reinvestment for growth to obtain more earnings. This growth in the company ensures the stockholders their share and the fame of the company in corporate world.
Growth is an inherent corporate value, because of the following reasons a) Value of the company: With profitable growth, the value of the company increases and attracts more investors for investing and thus development of company. b) Shareholders Value: Through profitable growth,
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Creating new business and innovation always come with elements called risk and unpredictability, which most business people (managers, senior management, etc.) dislike. Therefore it is very important to know how to get an insight into the risk involved and create predictability for generating growth within a company.

The key factors to consider for generating growth in a company are:
Managers:
It is very important to have enthusiastic and long term vision focused managers. Managers play an important role in generating growth for a company. Managers in already flourishing companies oppose risk. It becomes the responsibility of the middle managers to collect the ideas and present them to the managers so that they can be approved for implementation. Many forces like managers decision, character of the product developed due to idea, its impact on business plan etc., come into picture. But understanding and managing these forces makes the risk predictable. Managers would believe in an idea when credible data is being presented for idea that is being proposed. This credible data can be obtained by research, survey and other information gathering methods. The managers who carefully consider the new ideas and make a tactical decision, lays the foundation for shaping of innovation.
Predictability through theory:
It usually comes from a good theory. Managers usually do not heed attention to theories because it is
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