growth strategy in small business

1. BY. RACHIT JAIN
B.COM (HONS) SEM 3RD
29HBCM13

2. WHAT IS GROWTH
STRATEGY
The term Strategy is commonly used in our
day-to-day life.
Strategy is a well-planned
course of actions devise
to achieve an objective.
Growth strategy means a
plan to help the enterprise grow big in course
of time.

3. STAGES OF GROWTH
1. Start Up Stage.
2. Growth Stage.
3. Expansion Stage.
4. Maturity Stage.
5. Decline Stage.

5. TYPES OF GROWTH
STRATEGIES
1. Internal Growth Strategies : These imply
that enterprises grow their own without
joining hands with other enterprises.
2. External Growth Strategies : These imply
that enterprises grow by joining hands
with other enterprises.

6. MAIN STRATEGIES OF
GROWTH
1. Expansion.
2. Diversification.
3. Joint Venture.
4. Merger.
5. Sub-Contracting.

7. EXPANSION
Expansion is a form of internal growth of
business.
Expansion is the process
of becoming greater in
size, number, or amount.
Expansion is an increase in the level of
activity and of the goods and services of
enterprise taking place in course of time.

8. FORMS OF EXPANSION
1. Expansion through market
penetration.
2. Expansion through market
development.
3. Expansion through product
development or modification.

9. DIVERSIFICATION
Diversification is another form of internal
growth of business.
Diversification may be
defined as a process of
adding more products
/ markets / services to the existing one. Growth
by adding new products to the existing product
line is called Diversification.

10. TYPES OF
DIVERSIFICATION
1. Horizontal Diversification.
2. Vertical Diversification.
3. Concentric Diversification.
4. Conglomerate Diversification.

11. JOINT VENTURE
Joint Venture is a type of external growth
strategies adopted by
business firm.
Joint venture is a restricted
or a temporary partnership
between two or more firms to undertake jointly
to complete a specific venture. The parties who
enter into agreement are called co-ventures.

12. MERGER
Merger is yet another form of external growth strategies.
When two or more existing enterprises are combined
into one , it is called Merger.
It takes place in two ways, first is
Absorption when an enterprise
or enterprises may be acquired
by another usually a big one and
second is Amalgamation when two or more existing
enterprise merge into one to form a new enterprise.

13. SUB-CONTRACTING
Sub-Contracting system is a mutually beneficial
commercial relationship
between the to companies.
A sub-contracting relationship
exists when a company places
on order with another company
for the production of parts, components, sub-
assemblies to be incorporated into a product
sold by the contactor.

14. THANK YOU