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Main features of a business at the growth stage (Take off, Constantly…
Main features of a business at the growth stage
Take off
Constantly increase the average level of sales
Continue growing through mergers and takeovers
Diversify business activities
Rapid increase in sales, new products introduced and some slow-selling products deleted
Development of new products to satisfy market niches
Price discounts due to lower production costs
Desire to increaser market share by using mass-marketing techniques
Extensive promotional activities and a widening distribution network
Profit should increase due to rising sales and falling production costs
Raising of finance tends to be easier
Use of sophisticated, computerised accounting procedures and systems
Main sources of finance: financial institutions, selling of shares or taking on more partners
Difficulties in cash flow if it is too rapid, adequate cash flow must be maintained to continue expansion, forecasting of sales and expenditures is crucial
Prouduction costs decrease , business more efficient in areas of administration, finance and production
Satisfying existing customer base and tapping into new market both domestic and overseas
Delegation of responsibilities
Formalised organisation structure
Incorporated entity; private or public
Problems of moving away from business core activities, not enough experience in new areas