How Are You Going To Grow Your Business?
Strong organizational readiness and renewal capabilities are great assets for a company to have. Prior to investing in new business opportunities we need to understand how ready and strongly built the organization is to change.
There will be a range of opportunities and alternatives to choose from, with various risk levels that must be foreseen, if they are to be overcome. It is important to illustrate how the strategic plans are formulated, built and implemented to help companies to reach their desired destination, with high confident levels.
The growth strategies themselves are basically fostered on the organizational readiness strengths to proactively transform and sustain changes.
The growth possibilities are:
When a company capitalizes on current brands, brand innovation, assets and organizational readiness. As well as utilizing spare production capacity and available resources that support new market initiatives in the current markets. Organic growth as key driver to build stronger business has the lowest risk, as it is basically doing business as usual in current markets.
Is when a company capitalizes on company and/or brand acquisitions or mergers in current markets. Opportunities may exist to purchase companies that complement an existing strength – i.e. buy a company for local distribution network. The single most important value in this case is to acquire only great brands or businesses that demonstrate long-term profit and growth opportunities. Moreover, one must ensure that they fill a clear portfolio gaps for the current business. Mature or deteriorated brands will generate problems. The main risk factors are firstly the complexity of sustaining the merged brand revenues and, secondly, the challenge of merging two company cultures. Basically, key employees may leave the company if they feel threatened. This could generate poor employee morale and lack of commitment.
New Market Innovation
When a company capitalizes on establishing a new business in a new market. New markets innovation is the most tempting because new markets are dry of company goods and waiting to be explored. It looks easy, however new market innovation has the highest business risk. This is due to all the external risk factors involved, such as political instability, legal barriers, local regulations understanding, market competitiveness and cultural hurdles.
Unlocking new business opportunities foster radical changes which makes it possible for the company to continue deliver acceptable growth and profits targets.