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Chapter 11 Growth: take-off

Chapter 11 Growth: take-off. Entrepreneurship and Small Business Paul Burns. Back to Contents. The Ansoff matrix product–market strategy. Markets. Existing. New. 1 Do nothing Consolidate Increase market penetration Withdraw. Existing. Product or service. New.

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Chapter 11 Growth: take-off

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  1. Chapter 11 Growth: take-off Entrepreneurship and Small Business Paul Burns Back to Contents

  2. The Ansoff matrixproduct–market strategy Markets Existing New 1 Do nothing Consolidate Increase market penetration Withdraw Existing Product or service New

  3. The Ansoff matrixproduct–market strategy Markets Existing New 1 Do nothing Consolidate Increase market penetration Withdraw Existing Product or service 2 Product/service development New

  4. The Ansoff matrixproduct–market strategy Markets Existing New 3 Market development 1 Do nothing Consolidate Increase market penetration Withdraw Existing Product or service 2 Product/service development New

  5. Barriers, profitability and risk Exit barriers Low High Low, stable returns Low, risky returns High Entry barriers High, risky returns High, stable returns Low

  6. The Ansoff matrixproduct–market strategy Markets Existing New 1 Do nothing Consolidate Increase market penetration Withdraw 3 Market development Existing Product or service 2 Product/service development 4 Diversification – related     – unrelated New

  7. Types of diversification • RELATED DIVERSIFICATION • Backward, vertical diversification • Forward, vertical diversification • Horizontal diversification • UNRELATED DIVERSIFICATION

  8. Growth and risk Newness of product Same Extended range Incremental changes Totally new Same Better coverage Increasing risk Newness of market Increasing risk Related Totally new

  9. Management expectations Resources and strategic capability The environment 1Strategic analysis The process of strategic management

  10. The process of strategic management Management expectations Resources and strategic capability The environment 1Strategic analysis Identifying strategic options 2Strategic choice Evaluation options Selecting strategy

  11. The process of strategic management Management expectations Resources and strategic capability The environment 1Strategic analysis Planning and allocating resources Identifying strategic options 2Strategic choice 3Strategy implementation Organisation structure and design Evaluation options Managing strategic change Selecting strategy

  12. Strategy development SWOT analysis Strategic analysis Owner’s aims Identify options Select options Evaluate options Implement options Plan and implement organisational structure Plan and allocate resources Plan and implement organisational culture Manage growth

  13. Growth Crisis Consolidation The growth process

  14. How do small firms develop strategy? CRISIS Emergent strategy Strategic planning CHANGE Strategic intent

  15. Using a common vision Aligning staff behaviour with a common purpose Decentralising in response to turbulence Strategic intent

  16. Plan cash flow Manage debtors Manage stocks Manage creditors Manage the banking relationship Beware overtrading

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