Describe Two Major Ways In Which A Company Can Grow

In a time of global commerce, new business ventures can take on many forms. What used to be local or even national companies have become world-wide. International growth of a business can be extremely beneficial but is not without its challenges. Different countries have different peoples and different cultures - different ways of doing business altogether. If a venture is to be successful, these differences must be well understood.

Small businesses are the backbone of national economy and play a leading role in innovations as well as in creating jobs. Small business has the intrinsic needs to growth. Obvious contributions of the growth of small businesses include the increased return on investment and job creation. The interesting and valuable question is how small business grows and are all small businesses growing? It is no surprise that the growth of business is a core topic both in organization theory and entrepreneurship, both are interested in the process and causes of business growth. Stages of growth models, which assume that business go through some distinct stages from birth to maturity, have been the most popular theoretical approach in academic to understand small business growth. Although the stages model of growth has been criticized for being too sequential and linear which is unrealistic and inconsistent with empirical evidence (e.g. Phelps et al., 2007; Levie and Lichtenstein 2010), various new stages models of business growth have been developed since the 1960s.

* Determine if companies should ask for consent from potential and current employees when using social media as another form of background check. Suggest an advantage or disadvantage inclusive to the traditional credit, criminal, or reference checks when using social media. Provide a rationale for your position.

The setting of a business compels most when there is a viable opportunity for the firm, organization or venture to succeed. It is in this pursuit for success that most firms are seeking the service off establishing and determining the performance of the firms. Measuring firm performance has several means of doing, however, the most commonly used one is the Return on Assets (Rumelt, 2011). Return on assets is a measurement methodology that assesses various factors and matrices in the line of action. However, most firms focus on the financial side of the venture, diverting their attention from the most compelling basis of the metric method. Return on assets is a tool that requires a critical and careful selection of the base criteria for measuring the success of the firm or company. However, focusing on the financial side only leaves the investors happy but the firm stagnating.

International business meshes across multiple domains most notably market entry strategies and sociocultural variances. Factoring in those two critical aspects and giving them the right amount of attention is the separating line between success and failure. Terralumen, Blue Ridge, and Delta are all successful companies; However, by not observing the basic requirements of

Hill, C. (2011). International business, competing in the global marketplace. (8 ed.). New York, NY: McGraw-Hill Irwin.

Many companies today want to expand their business to the international business, which can bring cost down and profits up. Taking a business internationally means knowing the rules and regulations of the countries you are entering. There can be many issues with going global which include cultural barriers, diversity issues, multicultural issues, political issues, and economical issues. It is very important to know how important expansion is to the company and what implications will come from going global.

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

A company can contribute in enhancing its performance and growth by using in market leverage which is seeking out new growth opportunities among your existing customers in your core market as currently defined and near market expansion pursing opportunities in unfamiliar sectors with new products. This approach is also known as expansion through adjacencies. Disruptive growth which is responding to dramatic change with entirely new business model and capabilities if and as appropriate, Thought important at times, this is rarer than many business people think and should be undertaken only if you have a clear idea of how link your existing capabilities system to the new one you will need. Capability development which is building distinctive organizational proficiency in a way that supports the other three forms of growth. This can be accomplished through a variety of means, including M&A, innovation and operations improvements. All four of these topics may seem familiar; they have been discussed over years at most companies such as Apple, Danaher, Disney

As discussed in Chapter 21 of our text book, any company that is looking to expand globally must make five key decisions. A firm must decide if: a) they really want to expand to the international market; b) they

Many companies will prefer to invest their excess profits in order to expand, but sometimes they are limited because of the maturity of the markets in their area. Therefore, they seek the overseas new markets to provide such growth opportunities. So, these companies, in addition to investing their excess profits, also try to maximize efficiency by employing their underutilized resources in human and capital assets such as management, machinery, and technology.

The world offers significant business opportunities for every company, however, opportunities are accompanied by significant challenges for managers. Managing global operations across diverse cultures and markets represents a big challenge and opportunity for companies. To compete in the global market and be successful, companies must learn the strategies, policies, norms and technology necessary to conduct international business. The opportunities for global expansion are numerous, and attaining success is a matter of developing the right strategy to win local markets and its consumers.

From the beginning of the 1990s, the global financial system has entered a phase of unprecedented restructuring, marked by the increasing integration of financial markets and increased economic interdependence. This process, known under the name of financial globalization allows companies better access to financing, offers investors a greater possibility of investment and thus increases the liquidity of the global economy.

Companies can decide to go global or to enter international markets for various reasons, and these different objectives at the time of entry that enable the business to produce different strategies and the performance goals, and even forms of market participation.

“The extent that the firm’s global strategy fits the industry globalization potential, positive performance will result”