Business strategy
Businesses may be of any type and level. All should be backed by robust growth strategies. In majority of cases business managing individual or directors strive for sustained growth of business for which they are responsible. For maintaining sustained growth, focus has to be kept on following ‘building blocks’ of Business Growth Strategy,
. Terms of measurement of growth
. Objectives of starting new business
. Existing business of ‘Service’
. Existing business of Product manufacturing
. Diversifying to other business opportunities together with existing business
. Expansion of business operations areas
. Stability strategies
. Goodwill as a source of Business Growth strategy
. Periodic review of growth
Terms of measurement:-There are a number of aspects according to which growth in business may be measured, which are as below,
. Values of business house assets in terms of money
. Reserves at the time of closing of financial year
. Profits after Taxes and statuary expenses
. Number of sales of product units during financial year
. Number of employees, category wise
. Number of holdings at various places in country as well as in other countries
Objective of starting business:In case of individuals, aim may be to earn for livelihood . To grow an opportunity for young generation of the family. In case of private or limited companies, objectives may be to generate best returns for Directors and share holders. Another objective may be to become a renowned organization, enjoying goodwill and confidence of market and important customers.
Existing business of ‘Service’: Service means to do some work for customers, who may be individuals or organizations. Repairing and maintenance of automobiles, for example, is a service. Maintenance and servicing Air Conditioning system of a factory or office is also a service .These seem to be minor affairs. But there are big services also such as Companies engaged in drilling of tunnels or making roads and bridge constructions in which large sums of money are involved. In such services growth strategy may be to save time by the use of more modern and efficient machinery.
Existing Business of Product Manufacturing: There may be good scope of growth of Product manufacturing/Production business. Existing product, as it is now, cannot remain static. Process of improvement in design, function keeps on going to cater to the needs and desire of ‘Market’. There might be a number of companies producing similar products. For example, there are a number of Brands of Refrigerators in the market. If performance of refrigerators producing companies is studied, then it would be revealed that certain companies are growing well in their business where as others are not growing well. Basic principle of business growth is that customers are constantly kept attracted by way of Product quality, price, after sale service and prompt availability.
Diversification: There are many factors when demand for existing product starts declining. Reason being development in science and technology. Here, an example may be sited.Hardly few years’ back Flashlights of various Brands and models were fitted with incandescent miniature lamps. With the development of LED light technology, old fashioned flashlights started disappearing from market place. Companies having a business growth strategy of constantly remain in the outlook of upcoming new technology and grab the opportunity, they WIN.
Business Operation Areas/Locations: Progressive companies may establish their Business branches/ associates and even establish production facilities at other places in the country or in other countries.
Stability Strategy: Stability is achieved through sustained and dedicated work. It is also important that employees are a well satisfied lot. Company has excellent reputation on national and international level.
Periodic review of growth: Techno-commercial audit at specified interval helps a lot to keep the operations of business ‘on track’.
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