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Growth Strategies - Coggle Diagram
Growth Strategies
Internal
why do it?
increase production capacity
launch new products
find new markets
higher efficiency
grow customer base
advantages
low risk
financed by profits
grow out sustainable rate
uses existing strengths
disadvantages
growth depends on market
leader? no growth
poor return on investment
excess capacity
franchises hard to manage
slow growth
unhappy staff
how to succeed
good communication
honesty + transparency
strong leadership
addressing issues quickly
strong financial plan
be realistic
issues with growth
choices
no synergy
little relevance
buy failing company
bad manager to oversee buyout
poor due diligence
stakeholders not consulted
management
no staff support
growth too fast
inefficient resources
low morale
lack of communication
expansion
diversification
new products
new industry
modenisation
External
why do it?
existing market saturated
insufficient internal skills
competitive threats
can't secure a loan
don't have internal finance
disadvantages
lack of synergy
misaligned organisation structures
employee disruption
lack of direction/focus
customer disatisfaction
advantages