Issues and Challenges Organisations Face When Pursuing Organic Rather Than External Methods of Development

The company likewise has already employed various strategies in order to maintain the high growth rate of the company. However these strategies is soon to reach its capacity to ensure growth. Based on the case as well, what seems to be lacking in the strategies that the company employed before is marketing, control of costs, and

Recognizing an organization’s alternatives for growth is an important process for companies. By evaluating and selecting the competitive advantages within a market a company can distinguish themselves from their competition. For an organization the “grand strategies indicate the time period over which long-range objectives are to be

Firms must consider many strategies when attempting to realize growth. Depending upon the stage of

Pearce, J. A., II, Robinson, R. B. (2011). Strategic management: Formulation, implementation, and control (12th ed.). Boston, MA: McGraw-Hill/Irwin

Due to the growing competition and diminishing market share, companies are opting for different strategies to achieve their survival objectives as well as growth. Companies are thus executing grand strategies to provide their businesses with a clear direction for its strategic actions. These strategies, therefore, aim at both short term and long term sustainability and growth, and they include innovation, market development, product development, and concentration.

Growth Strategies – is a strategy aimed at winning larger market share, even at the expense of short term earnings. These consist of 4 broad growth strategies:

The article raises the issue of revenue growth stalls that affect even the most successful companies. The article focuses on four major causes of the crisis. The first cause is the premium-position captivity that is”the inability of a firm to respond effectively to new, low-cost competitive challenge or to a significant shift in customer valuation of product features” (p.54). The second reason is the innovation management breakdown that is”some chronic problem in managing the internal business process for updating existing product and services and creating new one” (p.56). Third reason is the premature

Strategy formulation has been acknowledged as one of the most crucial factors of ensuring the long-term growth of the business. However, the manner in which strategy is formulated, and most importantly, the nature of the strategy chosen for the company determines its future position in the marketplace (Grant, 2005).

Businesses need to focus on external factors, as they are uncontrollable and impact each firm in an unexpected way. External Factors can affect the ability of a business or venture to accomplish its key objectives and destinations. These outside components may incorporate; Competition, social, legal, and technological changes, economic and political environment. This research paper will investigate external factors and their effects on organisations. The examination of the topic will be based upon precise research information, opening the negative effects of outer components.

Analyzing the above strategies, Enterprise appears to be adopting a growth strategy. Their strategy entails introducing new locations, adding new features to existing products.

When a company grows it achieves economies of scale, it increases its market shares and thus wipes out competition. A company starts making more profits and can use these in constructive ways such as employing specialist workers and improving the variety and quality of products, by delving more into research and development. These are only some of the

Some of the opportunities from global perspectives would be vertical growth, such as constant improvement, close financial monitoring, reducing costs, differentiating, or horizontal growth as territorial expansion, occupying new potential niches.

At the heart of Immelt’s growth strategy for General Electric’s was the development of new Growth Platforms, which could be either extensions of the existing businesses or entire new commercial areas. Even though Immelts core focus was on organic growth, repositioning to take advantage of the emerging market trends and opportunities would require acquisition. Then once a new Growth Platform was identified, GE would build a leading position in those sectors through small strategic acquisitions and the deployment of its financial, technical and managerial resources.

There are serval strategic options that can help business to grow. Firms choose the most suitable growth strategy based on the consumers, market situation and expansion objectives. The trend of globalization and internationalization drives the need to increase competitiveness by decreasing cost of production. Internationalization is a commonly adopted strategy for firms nowadays to expand their businesses and acquire more sales all over the world. It is defined as ‘developing networks of business relationships in other countries through extension, penetration and integration’ (Johanson & Mattsson, 1988). Firms usually use Ansoff’s Product/Market matrix to create a strategic planning tool that provides a framework to help entrepreneurs or

Koontz and Weihrich (1990) Organizational development as well as management coincide with one another. Organizational development seeks to offer a systematic process of identifying and solving problems as they occur over time. However, the greatest tasks of organizational developments are determining what techniques to use to make sure the organization continues to improve while fueling the growth of the organization (Koontz & Weihrich, 1990).