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Growth and Transformation

WHy important 

  • Company survival depends on continuous growth and an ability to defend against the ongoing moves of competitors”
  • if profit and sales go down you need to recognice, transform the firm 
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What is Growth? 

  • the eypansion of the size of a business or firm over time

Types of growth 

  • internal/organic growth ( the firm grows as such, step by step incremental) 
  • external growth( mergers, acisitions, strategic alliances) 
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dimensions of Growth

  • financial growth ( Assests, Sales, profits, ROI)
  • Organisational growth ( employees, divisions) 
  • Strategic growth ( market share, reputation, Brand value) 

all hangs toghetter. 

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Dimensions of growth

Financial growth

  • sales growth
  • invetment growth
  • profit and asset growth
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Dimensions of growth

organizational growth

  • development of the organization
  • changes in structure, process and culture 
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Dimensions of growth

strategic growth

  • All about competitive advantage 
  • Development of competencies to improve market position ( com. adv) 
  • Develop and defend sustained competitive advantage
    • Cost leadership
    • Differential strategy
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determinants of growth

x: product orientation ( we procude x,y) -------> resource orientation ( focus on core competences, focus on tools to build different things) 

y: Inactive orientation ( leave things how they are) ......> opportunity orientation ( propensity for pursuit of opportunity)  change thungs and take opportunities 

=> opportunity orientation & resource orinetation = High growth petential 

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Transformation definition 

  •  the way an organization changes its establishes routines 
  • major or substantial change in org
  • changes with revitalizing potential 
  • a manifestation of corporate Entrepreneurship / Strategic enrepreneurship ! ( by transformung org. you allow entrepreneurial behaviour to emerge)