...The Dimension of Business Growth The Process of Growth Four Perspectives: 1. Financial Growth-relates to the development of the business as a commercial entity. 2. Strategic Growth-changes that take place in the way in which organization interacts with its environment. 3. Structural Growth-changes in the way the business organizes its internal systems. 4. Organizational Growth-changes in the organization’s processes, culture, and attitudes as it grows and develops. Financial Analysis The Balance Sheet-structure of financial reporting shows the assets and liabilities of the firm as being equal. The Profit and Loss Account-provides a summary of the revenues obtained as a result of trading activity over the period in question. 1. Gross Profits-profits generated by the business. 2. Profit before Tax-profits left after interest on debts has been paid. 3. Profit after Tax-profits after any tax owing to the government has been paid. 4. Retained Profits-profit left after tax has been paid is properly the property of the firm’s shareholders. Ratio Analysis-can be used to provide valuable insight into the performance, condition and stability of the venture. Three Types of Ratio 1. Performance Ratio-indicate the way the business is performing. a. Profit Margin-ratio of profits to turnover. b. Return on Investment-fundamental measure of a venture’s performance. * Return on Equity-ratio of profit after interest payments...
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...[pic] Resumen “Every Business is a Growth Business” Nombre: José Luis Andrade R. Matricula: A00991758 Prof. Luis Herrera Materia: Decisiones Estratégicas de Mercadotecnia Fecha: 06 Junio 2012 INTRODUCCIÓN En el libro “Every Business is a Growth Business” describe como las compañías pueden prosperar año tras año. Lo que principalmente encontramos es cómo posicionar el crecimiento de nuestra compañía y cambiar el “código genético” de la organización para que todos sus líderes en todos los niveles persigan dicho objetivo. Para cambiar el código genético es necesario crear un marco de trabajo basados en un “punto de vista” desarrollado por la dirección siendo estos reforzados y reiterados mediante mecanismos diseñados cuidadosamente. Así mismo combina las experiencias de los mejores líderes de diversas compañías que a pesar de que sus industrias son muy diferentes, se ha descubierto que comparten formas de pensar y que al llevarlas a la práctica han logrado que sus empresas crezcan pero sobre todo haciéndolas rentables, sostenibles y eficientes usando su capital, ya que el crecimiento no necesariamente implica estas últimas cuestiones. Menciona que siempre es importante tener las siguientes consideraciones, que son puntos que se desarrollarán más adelante: • Ninguna empresa tiene la madurez necesaria desde el principio, siendo que las oportunidades de crecimiento siempre existen. Para esto hay que identificar...
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...Introduction Small business growth is the process through which small market enterprises transform to huge enterprises with high revenues. A business growth strategy is applied to transform a small business into a big one according to the organization`s goals. Transforming a business requires a change of organization structure and sometimes a change of business form. Additional financing is also necessary to increase the level of operation of a business. Customers have to be wooed through promotions to enable the business to maximize its profits. Growth Strategy Strategy is a purposeful choice to be different. Business growth strategy involves selecting alternatives and tradeoffs that will give the business competitive advantage. There are several growth strategies available to a business. They include market penetration, market development, alternative channels and product development. Currently Jayne has been using market development strategy to grow her business. This is where an organization seeks to sell more of its existing products in the adjacent markets (Dahl, 2010). She has acquired three bicycle towed concessions to distribute her products to neighboring areas. Jayne’s expansion plan will require a change of growth strategy to market development growth strategy. This is where a business creates a new product to sell to new consumers and existing customers (Dahl, 2010). Jayne’s short term goals include becoming a more profitable enterprise offering a wide variety of...
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...4.0 BUSINESS GROWTH STRATEGY 4.1 How and Why Vida Beauty Adopt This Growth Strategy First of all, growth strategy refers to an organization substantially broadens the scope of one or more of its business in terms of their respective customer group, customer functions and alternative technologies to improve its overall performance. Then, in developing growth strategies for growth firm there are two strategies which is internal growth strategy and external growth strategy. Internal strategy involves efforts taken within the firm itself. Then, for perform internal strategy they need to create new product development, other product related strategy and international expansion with the purpose of increasing sales revenue and profitability. External strategy is relying on establishing relationships with third parties such as mergers, acquisitions, strategic alliances, joint ventures, licensing and franchising. In our opinion, Vida Beauty use internal strategy to make sure that the companies become a growth firm and expansion. In internal growth strategies the distinctive attributes of internally generated growth is that a business relies on its competencies, expertise and the employee also. In addition, internally also called as “organic growth” because it does not rely on outside intervention. Organic growth is growth that comes from a company’s existing business as opposed to growth that comes from buying new business. Besides that, it also the process of business expansion due...
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...Research the reasons for the growth of online business in the last ten years. What do you think are the most influential ones and why? Online business or electronic commerce is the buying or selling products or services via the Internet or the utilizing of Internet technologies to increase productivity or profitability of the business. Due to the evolution of technology and World Wide Web in the 1900s, the market has significantly progressed from traditional brick-to-mortar businesses to electronic businesses within the last decade. This essay will explore the factors in the growth of online businesses, which includes removal of location and time limitations, greater customer relationships, enhanced product experience and services and low procurement costs. Amongst many of those triggers, it is the low economic impacts of such benefit that accounts for the major reasons wherein traditional businesses have progressively change their format. The removal of location and time limitations by the use of Internet has made business highly accessible to customers around the globe. This accounts for the main factor for the increase of online businesses (Jie, M., 2000). Consumers no longer need to see the physical stores in order to access information of products and sales. They now learn about product information over cooperate websites or even shop online via product-sale websites like eBay and Amazon (Blakey, P., 2008). By the nature of Internet, product information is made available...
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...Chapter 1 Lecture Notes * Selective Attention * What kind of attention span * How do other people pay attention to what you’re saying * Filters * 5 or 6 * Understand diff filters * How do people use/abuse them * “I know better” * “it’s not my fault” * Inadequate Feedback * Working with friends, ask question about item, “huh/yes/no” not enough information to carry on responsibility * In business world- supervisor/boss doesn’t give clear/clean instructions * Don’t get adequate feedback * How to deal with/how to help other people do a better job of communicating * Listen carefully, find out what real problem is * Words mean different things to different people * Rich’s example: The word “material” * Means significant, more than 10% of an item * His colleague: means any tangible item that you were putting on a product * Resistors, deciding how many to buy, “don’t need to worry about this, it is material? * Meant significant to rich, meant tangible to gary * Understand where people are coming from, background * Do not rush to resolve conflict * Identify conflict, listen to all parties position on the conflict, call timeout, come back x hours later when people have had a chance to think about it * Status Quo * People who do not want to change, think in status quo * Others...
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...Strategic Plan for Business Growth Morgan Cameron MGT450 Uchenna Nwabueze 12/21/2015 In order for any organization to have the opportunity for growth, a strong strategic business plan must be put into place. There are certain things that one must understand thoroughly in order to put a strategic plan together that will ultimately be effective. Some of these key factors that must be understood is the current position in the market, how to put together a SWOT analysis which identifies the strengths, weaknesses, opportunities, and threats of the organization, and finally a method to measure the success of the strategic plan needs to be put into place. This essay will address each of those issues in order to put together a strategic plan for growth of the defense contractor known as Northrop Grumman. Northrop Incorporated was founded in 1939 by John K. Northrop, and within its first year of business they produced their first aircraft, the N-3PB patrol bomber for the Norwegian air force. Over the years the company would produce multiple state of the art military aircraft. In 1989 they designed, developed, and produced the world famous B-2 stealth bomber, which they received a honor from the United States Air Force for in 1991. In 1994 Northrop Incorporated purchased the Grumman Corporation and officially changed their name to Northrop Grumman. Just earlier this year Northrop Grumman won the contract to build Americas next stealth bomber, the B-3 bomber (northropgrumman.com...
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...passing of time a business enters into different phases of its life. “Like a person or a family, a company experiences predictable stages of growth, each with its own problems and opportunities.” (Vastine) In order for a business to capture the market it needs to go through the stages to gain popularity. Every business has its own set of guidelines and processes designed to function well. “As the business grows, its organizational structure is heavily influenced by function (people grouped with similar responsibilities), process (people involved in similar processes), product (people building a specific product) or projects (members of a project).” (Watson, 79) The first stage consists of growing the business. “ In a one-person operation, the owner does everything: sales, bookkeeping, marketing, production and so on. Many firms remain one-person operations indefinitely due to the owner's family obligations, financial constraints, or contentment with the status quo.” (Longenecker,27) This is the initial phase that every business goes through. It can also be referred to as the expansion phase as the business tries to establish its niche in the market. Stage two is all about growing and establishing the business. “So the owner assumes additional employee management duties such as hiring, scheduling, supervising, and payroll.” (Longenecker) This is the stage where the business owners start establishing their brand with their loyal customers. Overall, the growth stage is marked...
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...E-business (Electronic Business), derived from such terms as ‘e-mail’, ‘e-commerce’, is the conduct of business on the internet, not only buying and selling but also servicing customers and collaborating with business partners. History of ecommerce dates back to the invention of the very old notion of "sell and buy", electricity, cables, computers, modems, and the Internet. Ecommerce became possible in 1991 when the Internet was opened to commercial use. Since that date thousands of businesses have taken up residence at web sites. At first, the term ecommerce meant the process of execution of commercial transactions electronically with the help of the leading technologies such as Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT) which gave an opportunity for users to exchange business information and do electronic transactions. The ability to use these technologies appeared in the late 1970s and allowed business companies and organizations to send commercial documentation electronically. Although the Internet began to advance in popularity among the general public in 1994, it took approximately four years to develop the security protocols (for example, HTTP) and DSL which allowed rapid access and a persistent connection to the Internet. In 2000 a great number of business companies in the United States and Western Europe represented their services in the World Wide Web. At this time the meaning of the word ecommerce was changed. People began to define...
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...1042-2587 © 2008 by Baylor University E T&P The Effect of Small Business Managers’ Growth Motivation on Firm Growth: A Longitudinal Study Frédéric Delmar1 Johan Wiklund This study addresses the role of small business managers’ growth motivation for business growth, taking into account the important effects of previous motives and feedback from earlier performance. We hypothesize that small business managers’ growth motivation has a unique influence on firm outcome measured as growth in sales and in number of employees. Data were gathered from two different Swedish samples of small firms using telephone interviews. Using cross-lagged regression analysis, we find support for our hypotheses when examining employment growth, but only partial support when examining sales. Introduction The psychological construct of motivation has an important role to play in entrepreneurship research. As stated by Shane, Locke, and Collins (2003, p. 257): “We believe that the development of entrepreneurship theory requires consideration of the motivations of people making entrepreneurial decisions.” One of the areas in entrepreneurship where motivation is potentially of great importance relates to firm growth. There is research to suggest that growth is one of the most important outcomes of entrepreneurial efforts because it indicates the degree of success of that effort (Bhidé, 1999; Venkataraman, 1997), and effort exerted is closely related to the individual’s motivation (Davidsson, Delmar...
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...the effects of Business Growth Limor Elazar Columbia Southern University Introduction “Simply put, social media is an “open media for interactive communication led by normal people”” (Dong-Hun, 2010, p. 112). Social media represents new opportunities for businesses to expand their customer base and brand. Implementing social media outlets such as Facebook, Twitter and Tumblr is the innovative way to mobilize immediate marketing. Social media can be a critical factor for business image, many sites allow for customer reviews. Not all of the company’s reviews will be positive but the way the company responds will have numerous consequences for the company’s image. Problem Statement “One of the biggest threats of social media inaction is to risk having a big, dark cloud cast over the brand” (Overhulse-king, 2010, p 42). Many companies are not aware of the information on social media and do not engage in the use. This can be very harmful for the organization brand. Lack of participation in social media handicaps the organizations by not building positive relations with customers and minimizing negative ones. Current Situation All businesses have inherent threats, competition, branding, company image and cost. In order for an organization to continue to grow economically they must integrate social media strategies. “If corporations were to analyze their opportunities for social responsibility using the same frameworks that guide their core business choices, they...
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...Business Proposal – Future Growth Inc. Executive Summary Background Future Growth Inc. (FGI) is a full-spectrum equipment financing, sales, and manufacturing company that has been in business for 67 years. Their primary product concentration areas are construction and forestry equipment. Originally the company offered only small consumer financing loans for households. The company expanded its product offerings into the commercial financing realm by providing business loans for acquisition, operations, and commercial real estate needs. The company made the decision to add to its product line by offering equipment financing, which began in 1946. The company created a subsidiary called Future Growth Inc. (FGI) for this purpose. After WWII, there was a spike in the demand for construction and forestry equipment because of the post-war housing boom. FGI was in a key strategic business position, possessing a significant portion of the equipment finance market, and made the decision to improve upon their position by purchasing an equipment manufacturing company, which they accomplished in 1951. Because of this single managerial decision, the company was able to grow and be profitable for the next 55 years. The company stock has risen from $5 per share to $85.60 per share. The company has witnessed six stock-splits over the decades, and the current stock price is $35 per share. With the global market downturn beginning in the late 2000s, the once stable and profitable company...
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...HUMAN RESOURCE MANAGEMENT AND BUSINESS GROWTH As business organisations move further into the twenty-first century, Sims (2002: 13) asserted that it is becoming absolutely clear that the effective management of an organisation’s human resources (HR) is a major source of competitive advantage and may even be the single most important determinant of an organisation’s performance over the long term. With the integration of HR issues with business issues and of human resource processes with management processes, it is only logical that the HR staff function should be integrated with the business organisation, rather than being a separate entity. Companies are radically restructuring the HR function and redefining its roles. According to Gunnigle, Heraty and Morley (2002: 2), the objectives of integrating it with business strategies include reducing overhead expenses, focusing time and resources on activities that add the greatest value to the business; reducing attention given lower value activities, aligning staff more closely with the business, as part of the management team at each level and addressing important people-related business issues more effectively. For a sole trader who wishes to grow the business through engaging the services of additional people, it is of foremost importance that the business owner review his or her recruitment and selection policy and all the associated documentation including job descriptions and personnel specifications, application forms etc...
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...Corruption and its impact on Growth, Business and Government Effectiveness Ivo Dimovsky Managerial Economics – Empirical paper EMBA - American University of Bulgaria April 4th, 2012 ABSTRACT Corruption, like an infection, has co-existed with human society for a long time. Corruption has received significant attention among economists and international financial institutions during the last few decades, given its impact on economic growth both in developed and developing countries. There is an increasing volume of literature on the relationship between corruption and economic growth, and the general conclusion is that corruption slows down the long-term growth of an economy through a wide range of negative post-effects. It hampers economic growth, disproportionately burdens the poor and undermines the effectiveness of any investment and aid. Some theoretical studies suggest that corruption may counteract government failure and promote economic growth in the short run, however in recent years this studies aren`t anymore valid given the clear message from the negative effects on society and the economic system. In this paper we will analyze and present: First, we will describe and list a number of causes and consequences of corruption, derived from recent international studies from worldwide organizations trying to fight corruption. Second, we will introduce a regression model that can help explain the negative relationship between corruption (Corruption Perception Index...
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...Small Business Commission Findings and Recommendations for Small Business Growth and Job Creation in Current Economic Environment Principles of Microeconomics Small Business Growth and Job Creation in Current Economic Environment A) Privatization of Many Federal Services and Government Worker Pay Reductions: A recent report conducted by the Government Accountability Office (GAO) regarding duplicative federal programs found what we have all known for some time to be excruciatingly true. The national government and current $3.8 trillion federal budget are filled with duplicated, overlapping programs and agencies. Here are just a few of the many examples. The federal government runs 80 economic development programs across 4 different agencies at a cost of $6.5 billion dollars. When asked these economic development programs could show little, if any evidence of factual results and/or verifiable signs of actual economic development. The federal government runs 20 agencies operating 56 programs dedicated to financial literacy. When asked for actual numbers reflecting the operational costs of these programs the GAO was unable to estimate the cost based on the limited information provided. Sen Tom Coburn (R-OK) made this statement in regards to the GAO report. “This report confirms what most Americans assume about their government. We are spending trillions of dollars every year and nobody knows what we are doing. The executive branch doesn’t know...
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